If the Owner's Equity Account Increases During the Year, Most

question 13

Multiple Choice

If the Owner's Equity account increases during the year, most likely

• A) The company was promised a large and profitable contract for next year.
• B) Equipment purchases were higher than average for the year.
• C) Payment of liabilities was lower than average for the year.
• D) The owner made additional investment during the year.

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Definitions:

Variance

A statistical measure of the dispersion or spread in a set of data points, indicating how much the values differ from the mean of the set.

Variance

A measure of variability that denotes the average of the squared differences from the mean, showing how widely the values in a data set are spread.

Squared Deviations

Values obtained by subtracting the mean from each data point in a set, squaring the result to eliminate negative numbers, used in variance calculation.

Aptitude Test

An examination designed to measure a person's ability to develop skills or acquire knowledge, predicting future performance.