An Estimate of a Population Parameter That Provides an Interval

question 63

Multiple Choice

An estimate of a population parameter that provides an interval of values believed to contain the value of the parameter is known as the

• A) confidence level.
• B) interval estimate.
• C) margin of error.
• D) point estimate.

---

Definitions:

Past Event

An event or transaction that has occurred prior to the balance sheet date, impacting the financial position or performance of an entity.

Reliable Estimate

A calculation or assessment regarding figures or outcomes that is deemed dependable based on available evidence.

Contingent Liability

A contingent liability is a potential financial obligation that may arise depending on the outcome of an uncertain future event.

Accrual

A bookkeeping approach that logs income and expenditures at the time they occur, irrespective of the timing of actual cash transactions.