In Classifying the Elements of Financial Statements, the Primary Distinction

question 81

Multiple Choice

In classifying the elements of financial statements, the primary distinction between revenues and gains is

• A) the materiality of the amounts involved.
• B) the likelihood that the transactions involved will recur in the future.
• C) the nature of the activities that gave rise to the transactions involved.
• D) the costs versus the benefits of the alternative methods of disclosing the transactions involved.

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Definitions:

Statistical Inference

The method of applying data analysis techniques to infer characteristics of a base probability distribution.

Descriptive Statistics

Descriptive statistics refer to brief descriptive coefficients that summarize a given data set, which can be either a representation of the entire or a sample of a population.

Sample

A subset of a population chosen for measurement, observation, or questioning, to provide statistical information about the population.

Population

The entire group of individuals or instances about whom we are hoping to make conclusions in a statistical analysis.