Assume that the ending inventory of a merchandising firm is overstated by $43,300. required:
a. by how much and in what direction (overstated or understated) will the firm's cost of goods sold be misstated?
b. if this error is not corrected, what effect will it have on the subsequent period’s operating income? operating income will be too low. operating income will be too high. no effect on operating income.
the scale of measurement used here is an ordinal scale.
ordinal scales ask participants to rate things like satisfaction, happiness, comfort. etc. the important thing to remember about this scale is that the order of the values matter the most. for example: we know that a 5 is better than a 1, but we are unsure of exactly how much better. this difference cannot be quantified or measured exactly. an easy way to remember this one is that ordinal sounds like "order" and that is what this measure is used for- putting things in order.
the most common form of ordinal measures is the likert scale. the question is an illustration of a likert scale.
the answer is b. interest is expressed as a percentage of the amount you are borrowing.
the correct statements are:an increase in price leads to a decrease in quantity demanded. a decrease in price leads to an increase in quantity demanded.
according to law of supply & demand:there is an inverse relationship between the price & quantity demanded. there is an direct relationship between the price & quantity supplied.