The Reversal of Conclusions Based on Aggregate and Unaggregated Data

question 40

Multiple Choice

The reversal of conclusions based on aggregate and unaggregated data is called:

• A)Simpson's paradox
• B)Trim's paradox
• C)Poisson dilemma
• D)Simon's paradox

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services provided on credit.

Sales

Revenue earned from the exchange of goods or services during a specific period.

Direct Approach

A method used in cash flow statements where cash receipts and payments are reported directly to calculate net cash from operating activities.

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate operational cash flow.