Boomerang Computer Company Sells Computers with an Unconditional Right to Return

question 106

Multiple Choice

Boomerang Computer Company sells computers with an unconditional right to return the computer if the customer is not satisfied. Boomerang has a long history selling these computers under this returns policy, and can provide precise estimates of the amount of returns associated with each sale. Boomerang most likely should recognize revenue:

• A)When Boomerang delivers a computer to a customer.
• B)When Boomerang receives cash from the customer.
• C)When a customer returns a computer.
• D)Never, because the right of return is unconditional.Returns can be estimated at delivery, so an allowance can be created and revenue recognized at that point.

Understand the requirements for page numbering in formal reports.

Recognize appropriate salutations and openings in business communication.

Understand the use of enclosure notations in business letters.

Know the proper setup for memo headings.

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Definitions:

Confidence Interval

A gambit of values, sourced from sampling data, that probably captures the value of a concealed population parameter.

Mean Score

The average value obtained by dividing the sum of all scores by the number of scores.

Aptitude Test

An exam designed to measure a person's potential to succeed in a certain skill or field of knowledge.

Confidence Interval

A set of values obtained from statistics of a sample which is probable to include the value of a parameter from an unknown larger population.