Provide an Appropriate Response

question 71

Multiple Choice

Provide an appropriate response.
-The prizes that can be won in a sweepstakes are listed below together with the chances of winning each one: $4200 (1 chance in 8000) ; $1600 (1 chance in 6900) ; $500 (1 chance in 3300) ; $300 (1 chance in 2000) . Find the
Expected value of the amount won for one entry if the cost of entering is 53 cents.

• A) $0.53
• B) $0.38
• C) $300
• D) $0.91

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Definitions:

Sales Tax Payable

A liability account that represents the sales tax collected from customers by a selling entity and owed to the tax authority.

Cash

Money in the form of currency, which includes bills, coins, and money in bank accounts that is available for immediate use.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operational cycle.

Accrued Expenses

Expenses that have occurred but have not yet been paid or recorded in the company's ledger.