An Ice Cream Stand Reports That 12% of the Cones

question 55

Multiple Choice

An ice cream stand reports that 12% of the cones they sell are "jumbo" size. You want to see what a
"jumbo" cone looks like, so you stand and watch the sales for a while. What is the probability that
The first jumbo cone is the fourth cone you see them sell?

• A) 93%
• B) 60%
• C) 33%
• D) 40%
• E) 8%

Understand the effects of inventory changes on cash flow.

Grasp the impact of accounts payable and receivable changes on the statement of cash flows.

Comprehend the significance of amortization of discounts on bonds and investment, and its reflection on cash flows.

Recognize the implications of changes in liabilities and assets, such as salaries payable and prepaid expenses on cash flow.

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Definitions:

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a long period, accounting for adjustments in all factors of production.

Short-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the amount that producers are willing to supply, over a short period.

Output

The quantity of goods or services produced by a firm, industry, or economy in a given time period.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the variable cost of producing each unit.