At the Heart of Aggregation Is the Idea That

question 33

Multiple Choice

At the heart of aggregation is the idea that

• A) random errors cancel each other out.
• B) random errors never cancel each other out.
• C) reliable errors cancel each other out.
• D) a sufficiently precise measure has no reliable error.

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Definitions:

Unrealized Gains and Losses

Increases or decreases in the value of investments that a company holds but has not yet sold, and therefore, has not yet realized the gains or losses.

Foreign Currency Items

Foreign currency items are transactions, assets, or liabilities denominated in a currency other than the reporting entity's functional currency.

Pension Liability Adjustments

Modifications made to the recorded amounts of pension obligations to reflect changes in estimates, plan amendments, or actuarial assumptions.

Investor

The company investing in another company’s stock.