A Company Will Most Likely Use an Estimated Method of Determining

question 20

Multiple Choice

A company will most likely use an estimated method of determining inventory when

• A) the company decides not to do a physical inventory
• B) a natural disaster has destroyed most of the inventory
• C) the company has not kept up with its inventory records
• D) the company is preparing annual financial statements

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Definitions:

Clairvoyance

The alleged psychic ability to gain information about an object, person, location, or physical event through means other than the known human senses.

Telepathy

The supposed communication of thoughts or ideas by means other than the known senses.

Difference Thresholds

The minimum difference in stimulation that a person can detect 50 percent of the time, also known as the just noticeable difference (JND).

Absolute Thresholds

The minimum stimulus intensity required to be perceptible to the senses.