When the Results of Experimentation or Historical Data Are Used

question 63

Multiple Choice

When the results of experimentation or historical data are used to assign probability values, the method used to assign probabilities is referred to as the:

• A)relative frequency method
• B)subjective method
• C)classical method
• D)posterior method
• E)none of the above

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Definitions:

Adjusting Entry

An accounting record created at the conclusion of a fiscal period to distribute revenues and expenses to the period they truly belong to.

Physical Inventory

A process of counting and verifying the actual quantities of inventory on hand, typically conducted at the end of an accounting period.

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the cost of shipping until they are delivered to the buyer's specified location.

Physical Inventory

The process of counting and verifying all the physical goods and merchandise a company has in stock at a particular time.