A Type I Error Is to a _____ as a Type

question 123

Multiple Choice

A Type I error is to a _____ as a Type II error is to a _____.

• A) true positive; true negative
• B) false positive; false negative
• C) false negative; false positive
• D) true negative; false positive

---

Definitions:

Nominal Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and withdrawal accounts, which are used to calculate the period's net income or loss.

Income Summary

An account in the ledger that is used to summarize the revenue and expenses of a period, facilitating the transfer of their net effect to retained earnings.

Net Income

The final earnings of a corporation once expenses and taxes are subtracted from its gross income.

Income Summary Account

An account used in the closing process to summarize the results of all revenue and expense accounts.