(I Five Students Were Given a Page of Problems with the Instructions

question 161

Multiple Choice

(i. Five students were given a page of problems with the instructions to solve as many as they could
In one hour. Five students solved the following number of problems: 12, 10, 8, 6 and 4. The
Arithmetic mean number of minutes required per problem is 6.5 minutes (average of 7 problems in
An hour) .
(ii. David Electronics had a profit of $10 million in 1998. Profit doubled from 1998 to 1999 and profit
Increased eight fold from 1999 to 2000. The annual geometric mean rate of growth from 1998 to
2000 was 300% (4 fold) .
(iii) The difference between the highest and the lowest value in a set of data is called the range.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements but not (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.

Calculate financial ratios, specifically profit margin, to analyze company financial performance.

Realize the importance and effect of making or omitting adjusting entries on financial statements.

Grasp the differences between accrual and cash basis accounting, and the importance of adjusting entries in the accrual basis.

Understand the concept of unearned revenue and its impact on financial statements.

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