The Three Commonly Used Measures of Central Tendency (Mode, Median

question 26

Multiple Choice

The three commonly used measures of central tendency (mode, median, and mean) ________.

• A) will always have the same value.
• B) will always fall in the same order: the mean will have the highest value, followed by the median and the mode.
• C) define "typical" or "average" in different ways and will usually have different values.
• D) will always fall in the same order: the mean will have the lowest value, the median will always be in the middle and the mode will have the highest value.

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Definitions:

Capital Account

This account records the investments made by owners or shareholders into a company, along with retained earnings and accumulated other comprehensive income.

Capital Balances

The amount of money that partners or owners have invested in a business, often reflected in the equity section of the balance sheet.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, representing the actual earnings retained.

Closing the Revenue

The process of transferring the balances from revenue accounts to a permanent equity account at the end of an accounting period.