When a Customer Enters a Store There Are Three Outcomes

question 112

Multiple Choice

When a customer enters a store there are three outcomes that can occur: buy nothing,buy a small amount,or buy a large amount.In this situation,if a customer buys a large amount,he or she cannot also buy a small amount or buy nothing.Thus the events are:

• A)independent.
• B)mutually exclusive.
• C)all inclusive.
• D)dependent events.

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Definitions:

Beginning Inventory

The value of inventory on hand at the start of an accounting period, used in calculating cost of goods sold.

Cost of Goods Sold

Direct financial expenditures related to the generation of a company’s saleable products, covering labor and materials.

Periodic Method

An inventory accounting method where updates to the inventory records are made periodically, typically at the end of the accounting period.

Merchandise Inventory

Goods available for sale, reported as a current asset on a company's balance sheet.