To Calculate the Sensitivity of a Laboratory Test to Correctly

question 1

Multiple Choice

To calculate the sensitivity of a laboratory test to correctly classify true positives,one must first know the number of:

• A) true positives and false negatives.
• B) true negatives and false positives.
• C) true positives and false positives.
• D) false positives and false negatives.

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Definitions:

Estimating Inventories

The process of approximating the quantity and value of inventory a business has on hand.

Gross Profit Method

A technique to estimate inventory cost by using the gross profit margin, often used when physical inventory counts are impractical.

Financial Statement Effects

The impact of transactions on the financial statements, affecting the balance sheet, income statement, and cash flow statement.

Ending Inventory Overstatement

This occurs when the reported amount of inventory at the end of a period is higher than its actual value, which can distort financial statements.