A Type I Error Occurs When We

question 40

Multiple Choice

A Type I error occurs when we:

• A)reject a false null hypothesis.
• B)reject a true null hypothesis.
• C)don't reject a false null hypothesis.
• D)don't reject a true null hypothesis.

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Definitions:

Cumulative Adjustment

An accounting method used to make corrections to cumulative errors in financial statements of previous years.

Prior Period Adjustments

Corrections of errors in previously issued financial statements for periods that have already been reported.

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.

Net Income

After-tax and expense deductions from total revenue, the remaining profits of a company.