A Bill from a Consultant Was Received for Work Done

question 60

Multiple Choice

A bill from a consultant was received for work done in May 2012.There was no previous record of the transaction.It will be paid in July 2012.In May 2012:

• A) an asset decreased and an expense increased
• B) an asset decreased and a liability decreased
• C) a liability increased and an expense increased
• D) no entry is required until the next accounting period.

Calculate the effective interest rate including compensating balances.

Analyze the components and significance of working capital in financial operations.

Understand the initial steps in undertaking evaluations, including identifying measurable goals.

Recognize the advantages and pitfalls of using client satisfaction questionnaires and the importance of their ethical usage.

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Definitions:

Null Hypothesis

A hypothesis that states there is no statistical significance between the two variables in the hypothesis. It posits no effect or no difference as a default stance to be tested against.

Alternative Hypothesis

A statement that contradicts the null hypothesis and proposes that there is a statistically significant relationship between two variables.

Null Hypothesis

A default statement that there is no effect or no difference, often used as a starting assumption in statistical hypothesis testing.

Type I Error

The error that occurs when the null hypothesis is incorrectly rejected, falsely indicating a significant effect.