The Forecast for the Third Quarter Is 3,000 Units; the Seasonal

question 34

Multiple Choice

The forecast for the third quarter is 3,000 units; the seasonal index for the quarter is 0.75. What are the seasonally adjusted sales for the quarter?

• A)3,000
• B)3,079
• C)2,250
• D)1,015

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Definitions:

Fixed Compensatory

Relates to a form of compensation or damages that are predetermined and not subject to change.

Memorandum Entry

This refers to a journal entry made in the financial records to note a significant event or transaction that doesn’t involve a direct exchange of cash or value and hence does not affect the financial statements directly.

Stock Option Plan

A compensation strategy that allows employees to purchase company stock at a predetermined price.

Liability Account

An account used in accounting to keep track of obligations or debts that a company owes to others, representing claims against the company's assets by external parties.