Sullivan Company Uses the Periodic Inventory Method

question 1

Multiple Choice

Sullivan Company uses the periodic inventory method. The following balances were drawn from the accounts of Sullivan Company prior to the closing process: The amount of gross margin appearing on the income statement should be:

• A) $8,400.
• B) $7,200.
• C) $15,600.
• D) $18,400.

---

Definitions:

Sample

A subset of individuals, items, or events from a larger population used to draw conclusions about that population.

Population Mean

The average of all the values in a population. It is a parameter that describes the central tendency of the entire population.

Sample Mean

The average of all values in a subset of a population, used as an estimate of the population mean.

Population Standard Deviation

The square root of the variance of a group, measuring how far individual measurements in the population deviate from the population mean.