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Dr. Sheffield is a clinical psychologist who specializes in treating pathological gambling. Pathological gambling is defined as being unable to resist impulses to gamble. Bothered by not having a good measure that he can give to clients to determine whether they are suffering from this condition, he creates a new measure of pathological gambling. The measure has 15 questions, and it takes 20 minutes to complete.
Dr) Sheffield gives his measure to his supervisor, who is also an expert in pathological gambling. His supervisor says that his measure appears to test all the components of pathological gambling, including feeling restless when attempting to stop gambling, jeopardizing jobs in order to keep gambling, and using gambling to escape from problems and a bad mood. Given this information, Dr. Sheffield's measure has evidence of which of the following?
Incurred Expenses
Expenses that have been recognized in the accounting period when they are incurred, regardless of when the payment is made.
Profit Margin
A financial metric that shows the percentage of a company's revenue that remains as profit after accounting for costs and expenses.
Net Income
The remaining earnings of a company following the deduction of all expenses and taxes from its total revenues.
Net Sales
This represents the amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.
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