Construct Validity Indicates That Your Measuring Instrument Has the Ability

question 76

True/False

Construct validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring.

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Definitions:

Bad Debt Expense

A provision for accounts receivable that are considered unlikely to be collected.

Percentage of Credit Sales

An accounting method used to estimate bad debts expense by applying a fixed percentage to the total credit sales of a period.

Allowance Account

An accounting reserve established to adjust the carrying value of accounts receivable to their net realizable value, recognizing potential losses from uncollectible accounts.

Written Off Accounts

Accounts receivable that a company deems uncollectible and removes from its books.