THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 180

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
On average,an RV sales lot sells six RVs per month.Assume the number of sales of RVs per month follows the Poisson distribution.
-What is the probability that exactly six RVs are sold next month?

• A)0.266
• B)0.508
• C)0.232
• D)0.161

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Definitions:

Allowance for Sales Discounts

An account used in bookkeeping to estimate the reduction in revenue due to sales discounts that customers are expected to take advantage of.

Accounts Receivable

Debts owed by customers to a business for items or services that have been furnished but not compensated.

Sales Discounts

A reduction in the price of goods sold, offered by the seller to the buyer, often to encourage prompt payment.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of all inventory is performed at specific intervals to determine the level of inventory and the cost of goods sold.