Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A) Freight In is subtracted from Purchases to arrive at delivered cost of purchases.
• B) Another name that may be used for the Freight In account is "Transportation In."
• C) Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.
• D) The Freight In account is subtracted from Sales to get Net Sales.

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Definitions:

Correlation Coefficient

A statistical measure that quantifies the degree to which two variables vary together.

Sample Coefficient

A numerical measure that describes some characteristic or aspect of a sample of data.

Sample Covariance

A measure of the degree to which two variables change together for a sample of a population, indicating their linear relationship.

Cov (x,y)

Represents the covariance between two variables \(x\) and \(y\), measuring how changes in one variable are associated with changes in another.