Based on This Scree Plot, How Many Factors Should Be

question 8

Multiple Choice

Based on this scree plot, how many factors should be extracted?

• A)2
• B)4
• C)5

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Definitions:

Sales Account

An account in a company's financial records that tracks the revenue generated from goods and services sold.

Sales Discount

A reduction in the price of goods or services offered to customers, usually to encourage prompt payment.

Perpetual Inventory System

This technique documents transactions of inventory sales or purchases in real-time, utilizing computer-based point-of-sale systems and software designed for managing company assets.

Physical Inventory

The process of counting the actual items of inventory in stock to verify records and accounts.