In the Text, We Examined the Distribution of Starting Salaries

question 25

Multiple Choice

In the text, we examined the distribution of starting salaries for lawyers in 2012. The average salary was $81,000 but this might be misleading because the distribution

• A) had a strong positive skew
• B) had a strong negative skew
• C) was bimodal, with few salaries close to the mean
• D) had a range of only $10,000

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Definitions:

Beginning Inventory

The value of inventory on hand at the start of an accounting period, used in calculating cost of goods sold.

Cost of Goods Sold

Direct financial expenditures related to the generation of a company’s saleable products, covering labor and materials.

Periodic Method

An inventory accounting method where updates to the inventory records are made periodically, typically at the end of the accounting period.

Merchandise Inventory

Goods available for sale, reported as a current asset on a company's balance sheet.