When Using Ratio Data, Such as Sales, Prices or Salaries

question 39

True/False

When using ratio data, such as sales, prices or salaries, you should begin the bottom of the axis at some value larger than zero.

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Definitions:

Contra Account

An account used in the ledger to offset a related or a parent account, often showing the amount of reductions or adjustments to the main account.

Sales Account

An account in the general ledger that records the sales of goods or services.

Uncollectible Accounts

Accounts receivable that a business does not expect to collect due to customers being unable or unwilling to pay.

Estimated

An approximation or informed guess of a value, amount, or size based on available data or trends but not derived from exact calculations.