Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A) The sum of the deviations from the mean is always zero.
• B) The sum of the squared deviations from the mean is always zero.
• C) The standard deviation is always smaller than the variance.
• D) The distance between the first and third quartiles is twice the distance between the first and second quartiles.
• E) None of these is true.

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Definitions:

Adjusting Entry

Journal entries made at the end of an accounting period to update the accounts for accruals and deferrals not recorded during the period.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.

Percentage-of-Receivables Basis

A method used to estimate the amount of bad debt expense by applying a fixed percentage to the total amount of accounts receivable.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.