An Adjustment in the Pro Forma Statement May Be Necessary

question 19

Multiple Choice

An adjustment in the pro forma statement may be necessary for ________ expenses in line with known changes to these expenses that may not correspond directly with sales or production.

• A)cash
• B)credit
• C)selling,general,and administrative
• D)cash and credit

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Definitions:

Population

A complete set of items or individuals with at least one common characteristic, used in statistics for analysis and inference.

Multiplication Law

A probability law used to compute the probability of the intersection of two events. It is P(A ∩ B) = P(B)P(A ∣ B) or P(A ∩ B) = P(A)P(B ∣ A). For independent events it reduces to P(A ∩ B) = P(A)P(B).

Mutually Exclusive

Events that cannot occur at the same time; the occurrence of one event excludes the possibility of the other event(s).

Intersection

The set of elements common to two or more sets.