Which of the Following Would Represent a Systematic Error

question 214

Multiple Choice

Which of the following would represent a systematic error?

• A)Eddie regularly overspends. Friends and family bail him out, however, so he always ends up with what he wants.
• B)Ellen paid good money for a used car that is in constant need of repair.
• C)Sparky determines that he has to reduce donut consumption to lose weight but always ends up eating the ones provided in the break room at work.
• D)Clark makes regular math errors at work, sometimes coming out with figures too high, other times too low.

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Definitions:

Proprietorships

A business structure where a single individual owns and runs the business, bearing unlimited liability for its debts and obligations.

Partnerships

A business organization legally constituted by multiple individuals who jointly manage the enterprise and share in its profits.

Corporations

Legal entities that are separate from their owners, capable of owning assets, incurring liabilities, and being taxed; they raise capital through issuing stock.

Standard-Setting Environment

The framework and processes through which authoritative accounting principles and standards are developed and implemented.