Use the Following to Answer the Question(s) Below

question 17

Multiple Choice

Use the following to answer the question(s) below.
Chris Columbus is responsible for controlling inventory levels for four types of sailboats sold by his company. Chris takes a sample of 48 boats sold over the past several months to determine if demand is the same for each type. His results are as follows:

-The correct null hypothesis to be tested is

• A) type of boat and demand are related.
• B) the demand differs for each type of boat.
• C) the demand is the same for each type of boat.
• D) the demand is dependent on the type of boat.
• E) type of boat affects the demand.

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Accrual

An accounting principle that recognizes revenues and expenses when they are incurred, regardless of when cash transactions occur.

Adjusting Journal Entries

Entries made at the end of an accounting period to update balances of revenues and expenses to reflect the correct amounts earned or incurred during a period.

Accrual

A financial recording approach that logs income and expenditures at the time they occur, irrespective of the actual cash transaction timing.