Which of the Following Is True of Cluster Analysis

question 26

Multiple Choice

Which of the following is true of cluster analysis?

• A) It is a cause-and-modeling type of analytic model.
• B) It does not provide a definitive answer from analyzing the data.
• C) It is primarily a prescriptive analytical method.
• D) It uses clustered data that are not affected by the specific method used.

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Definitions:

Accounting Cycle

Describes the systematic process of recording and processing all financial transactions of a company, from when the transaction occurs to its representation in the financial statements.

Adjusting Entries

Documentation of transactions at the conclusion of a financial cycle to accurately apportion profits and costs to the period they were realized.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Ledger Accounts

A record within the general ledger that is used to collect and store balance and transaction information for individual items such as assets, liabilities, equity, revenues, and expenses.