Which of the Following Statements Is Not True About the Level

question 7

Multiple Choice

Which of the following statements is not true about the level of significance in a hypothesis test?

• A)The larger the level of significance, the more likely you are to reject the null hypothesis.
• B)The level of significance is the maximum risk we are willing to accept in making a Type I error.
• C)The significance level is also called the \(\alpha\)level.
• D)The significance level is another name for Type II error.

---

Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate period for an accurate financial statement.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost and dividends are recorded as income.

Elimination

The process in accounting of removing the effects of inter-company transactions to avoid double counting in consolidated financial statements.

Share Capital Account

a financial record that represents the funds raised by a company through issuing shares to its shareholders.