A Firm Has Just Ended Its Calendar Year Making a Sale

question 117

Multiple Choice

A firm has just ended its calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid in full for the merchandise during the year, it is yet to collect at year end from the customer. The net profit and cash flow from this sale for the year are ________.

• A) $0 and $150,000, respectively
• B) $37,500 and -$150,000, respectively
• C) $37,500 and -$112,500, respectively
• D) $150,000 and $112,500, respectively

---

Definitions:

Chi-Square

A statistical method employed to assess whether a notable difference exists between the frequencies that are observed and those that are anticipated across one or more categories.

Row Variable

A variable represented by rows in a table or matrix, often used to define or categorize the data horizontally.

Column Variable

A variable represented by columns in a dataset, where each column contains values of the variable for each observation.

Alpha

In statistics, often represents the significance level used in hypothesis testing, indicating the probability of rejecting a true null hypothesis.