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A company has 20 copy machines and every day there is a 5 percent chance for each machine that it will not be working that day. If the company wants to calculate the probability of, say, 2 machines not working, it should use the Poisson distribution.
Accounting Principle
Fundamental guidelines or rules that govern the accounting process, ensuring that financial statements are fair, consistent, and comprehensive.
Financial Statements
Reports that summarize the financial performance, position, and cash flows of a business over a specific period.
Net Income
The net income of a business following the subtraction of all costs and taxes from the total earnings.
Ending Inventory
Ending inventory is the total value of goods available for sale at the end of an accounting period, calculated using the beginning inventory, additions, and subtractions of goods sold.
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