(I If There Is Absolutely No Chance a Person Will

question 13

Multiple Choice

(i. If there is absolutely no chance a person will purchase a new car this year, the probability
Assigned to this event is 0.5.
(ii. If the set of events are collectively exhaustive and mutually exclusive, the sum of the probabilities
Equals 1.
(iii) Suppose four heads did appear face up on the toss of a coin four times. The probability that a
Head will appear face up in the next toss of the coin is 1/2 or 0.5.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Profit Margin

A financial metric that measures the amount by which revenue from sales exceeds costs in a business, expressed as a percentage of revenue.

Periodic Reporting

The process of preparing and presenting financial statements at regular intervals, typically quarterly or annually.

Time Period Assumption

An accounting principle that allows the business activities to be divided into artificial time periods for financial reporting.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.