The Minimum Cardinality from the Sales Event to the Services

question 83

Multiple Choice

The minimum cardinality from the Sales event to the Services entity is most likely 1 because

• A) every sale includes performing a service.
• B) a service is only recorded once a sale has occurred.
• C) only 1 service is provided for each sale.
• D) The minimum cardinality would not be 1; it would most likely be 0.

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Definitions:

Net Income

Net Income is the total earnings computed as revenues minus expenses, taxes, and the cost of goods sold, indicating a company's profitability over a specified period.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and receivables).

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.