Which of the Following Is True of Variance

question 109

Multiple Choice

Which of the following is true of variance?

• A) The formula to calculate variance of a population is not the same as the formula to calculate variance of a sample.
• B) Its value is inversely proportional to the degree to which the data is spread from the mean.
• C) It only requires the middle 50% of data to be calculated.
• D) It is the square root of standard deviation.

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Definitions:

Non-Controlling Interest (NCI)

A portion of the equity in a subsidiary not owned by the parent company, representing the minority shareholders' interest in the company's net assets.

Historical Cost Principle

An accounting principle stating that assets should be recorded and reported at their original purchase price.

Contingent Consideration

A future payment in a business acquisition that depends on specific outcomes or events occurring after the acquisition date.

Parent Company Method

An approach to preparing consolidated financial statements where the parent company's balances and transactions are presented as the primary entity.