If Data for a Time Series Analysis Are Collected on a Monthly

question 147

Multiple Choice

If data for a time series analysis are collected on a monthly basis only,which component of the time series may be ignored?

• A)Long-term trend
• B)Cyclical variation
• C)Seasonal variation
• D)Random variation

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Certificates of Deposit

Time-bound deposit offered by banks that pays interest to the depositor, with withdrawal of funds before maturity generally incurring penalties.

Internal Control

A process designed to ensure the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.

Petty Cash Vouchers

Documents used to manage and record small, usually incidental, expenses paid out in cash from a designated petty cash fund.