Franklin Company Began Business in 2008 and Has Consistently Used

question 6

True/False

Franklin Company began business in 2008 and has consistently used the cash method to report income from the sale of inventory in income tax returns filed for 2008 through 2011.As a result of an audit by the IRS,Franklin was required to change to the accrual method of accounting beginning with 2012.The net adjustment due to the change is a positive adjustment to income.

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Definitions:

True Null Hypothesis

The hypothesis that there is no effect or no difference, and it is the actual truth in the context of hypothesis testing.

Rejects

In statistical analysis, to reject refers to the decision of dismissing the null hypothesis based on the evidence provided by the data.

Type I Error Probability

The probability of incorrectly rejecting the null hypothesis when it is true, often denoted by alpha.

Reject

In statistical analysis, it refers to the decision to not accept the null hypothesis based on the results of the test.