Which One of the Following Is Correct

question 215

Multiple Choice

Which one of the following is correct?

• A) Inventory losses can be identified and controlled better under the perpetual system.
• B) The perpetual system eliminates the need for an annual inventory count.
• C) There is no difference in cost to implement a perpetual as compared to a periodic system.
• D) Inventory can only be sold at the end of an accounting period under the periodic system.

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Definitions:

Correlation Coefficient

A statistical measure of the extent to which two factors vary together, and thus of how well either factor predicts the other. Scores with a positive correlation coefficient move up and down together (as with high school and college GPAs). A negative correlation coefficient indicates that one score falls as the other rises (as in the relationship between self-esteem and depression).

Statistical Measure

A quantitative value representing a summary or collection of data, such as mean, median, or mode.

Random Sequences

Arrangements of numbers or objects in which each possible arrangement is equally likely, lacking any predictable pattern or order.

Self-Esteem

A measure of how much you value, respect, and feel confident about yourself.