A Pareto Chart

question 234

Multiple Choice

A Pareto chart:

• A) Is a chart showing the frequency of occurrence of problems.
• B) Is usually ordered from the least frequent to most frequent.
• C) Focuses a manager's attention on solving the smallest problems first.
• D) All of the above.
• E) A and C only.

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Definitions:

Net Income

The net income of a business once all costs, taxes, and deductions are taken from the overall revenue.

Double Rule

A method used in accounting to underline totals for certain accounts or figures, indicating a sum or conclusion.

Closing Process

The series of steps performed at the end of an accounting period to prepare the books for the next period, including updating accounts and transferring balances.

Income Summary

An account in the ledger that aggregates all income and expense accounts to determine the net profit or loss for a certain period.