Time Fixed Effects Regression Are Useful in Dealing with Omitted

question 11

Multiple Choice

Time Fixed Effects regression are useful in dealing with omitted variables

• A)even if you only have a cross-section of data available.
• B)if these omitted variables are constant across entities but vary over time.
• C)when there are more than 100 observations.
• D)if these omitted variables are constant across entities but not over time.

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Definitions:

Prepayment Accounts

Accounts used to record expenses that have been paid in advance and are recognized incrementally as expenses over time.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, including assets, liabilities, and shareholders' equity.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net income or loss.

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded, representing assets on the balance sheet.