Explain the Process of Construct Validation

question 11

Essay

Explain the process of construct validation.

---

Definitions:

Errors

Errors are mistakes or inaccuracies that occur in financial statements or other business documents, often necessitating corrections.

Debits

The left side of an accounting ledger where increases in expenses, assets, or decreases in liabilities and equities are recorded.

Credits

Entries in the accounting system that represent an increase in liabilities or equity or a reduction in assets, commonly associated with income and receipts.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts or funds obtained from special financing sources.