Which of the Following Is a Correct Statement

question 40

Multiple Choice

Which of the following is a correct statement?

• A) A scale must be reliable in order to have construct validity.
• B) A scale must have construct validity in order to be reliable.
• C) A scale must have face validity in order to be reliable.
• D) A scale must be reliable in order to have face validity.

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Definitions:

Ending Inventory

The worth of merchandise ready for sale when an accounting period concludes, determined by adding beginning inventory and purchases, then subtracting the cost of goods sold.

Retained Earnings

The cumulative amount of profits kept in a company after dividends are paid, used for reinvestment in the business or to pay down debt.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Equity

The value of an owner's interest in a property or business, determined by subtracting liabilities from assets.