The Difference Between KR 20 and Coefficient Alpha Is

question 54

Multiple Choice

The difference between KR 20 and coefficient alpha is

• A)KR 20 can be used to evaluate time sampling problems while alpha cannot.
• B)Alpha can be used to evaluate time sampling problems while KR 20 cannot.
• C)KR 20 can only be used for items scored right or wrong but Alpha can be used for items in any format.
• D)Alpha can only be used for items scored right or wrong but KR 20 can be used for items in any format.

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Definitions:

Goodwill Impairment

The decrease in the value of a company’s goodwill, which occurs when the market value of the entity is less than its recorded value on the balance sheet.

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to reflect its current market value.

Equity Method

A method in accounting for logging investments where the investor holds considerable sway over the entity being invested in, yet lacks full control.

Acquisition Differential

The difference between the purchase price of a company and the net fair value of its identifiable assets and liabilities.