Ski West Adjusts Its Accounts at the End of Each

question 7

Multiple Choice

Ski West adjusts its accounts at the end of each month, but closes them only at the end of the calendar year (December 31) . The ending balances in the Equipment Rental Revenue account and the Cash account in February and March appear below. Ski West prepares financial statements showing separately the operating results of each month. In the financial statements prepared for the month ended March 31, Equipment Rental Revenue and Cash should appear as follows:

• A) Equipment Rental Revenue, $18,400; Cash, $26,500.
• B) Equipment Rental Revenue, $18,400; Cash, $12,300.
• C) Equipment Rental Revenue, $6,300; Cash, $26,500.
• D) Equipment Rental Revenue, $6,300; Cash, $12,300.

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Definitions:

Sign Test

A non-parametric test used to determine if two related paired samples come from the same distribution, without assuming a parametric form for that distribution.

Matched Pairs

A study design where experimental units are paired up because they are similar in terms of certain factors, with one unit in each pair receiving each treatment.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.

Consecutive Weeks

A series of weeks that follow one after the other without interruption.