Regression Toward the Mean Occurs When

question 12

Multiple Choice

Regression toward the mean occurs when

• A)people's expectations lead them to experience some change, even though they receive a fake or ineffective treatment.
• B)people who originally score extremely high or low on some trait are measured a second time, and their new score falls closer to the average.
• C)people recover from a mental or physical illness without any form of intervention.
• D)people who originally score near the average on some trait are measured a second time, and their new score falls at the extreme high or low end of the scale.

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Definitions:

EFT

Electronic Funds Transfer, a system that moves money between accounts electronically.

Bank Reconciliation Process

The act of matching the balances in a company's financial records for a cash account to the corresponding information on a bank statement.

Outstanding Checks

Outstanding checks are checks that have been written and recorded in the issuing company's ledger but have not yet been cashed or cleared by the bank.

Deposits In Transit

Refers to money that has been received and recorded by a business but has not yet been recognized by the bank by the end of the accounting period.