Which One of the Following Statements Is TRUE About Error

question 49

Multiple Choice

Which one of the following statements is TRUE about error?

• A) Systematic error increases the reliability of a test.
• B) Systematic error lowers the reliability of a test.
• C) Random error lowers the reliability of a test.
• D) Both random and systematic error lower the reliability of a test.

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Definitions:

Functional Currency

The form of monetary exchange prevalent in the primary economic zone where an organization engages and creates cash flow.

Exchange Rate

The rate at which one currency can be exchanged for another currency, affecting international trade and investments.

Income Statement

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

Temporal Method

An exchange rate conversion method used in translating foreign currency financial statements, where monetary items are converted at the current exchange rate and non-monetary items at historical rates.