In Determining Weekly Seasonal Indexes for Petrol Consumption, the Sum

question 116

Multiple Choice

In determining weekly seasonal indexes for petrol consumption, the sum of the 52 means for petrol consumption as a percentage of the moving average is 5050. To get the seasonal indexes, each weekly mean is to be multiplied by:

• A)5200 / 5050.
• B)(5200 + 5050) / 52.
• C)(5050 + 52) / 5200.
• D)5050 / 5200.

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Definitions:

Estimated Bad Debts

A provision in accounting for the amount of receivables that are expected not to be collected, considered an expense.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over during a period.

Specific Accounts

Refers to accounts designated for specific purposes or transactions, distinguishing them from general or combined accounts.

Uncollectible

Refers to accounts receivable that a company has deemed to be uncollectable and is likely to write off as a bad debt.