Validity Is the Ability of a Measuring Instrument to Give

question 23

True/False

Validity is the ability of a measuring instrument to give a true measure.

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Definitions:

Dividends Payable

A liability account recording the amount a company owes to its shareholders in announced dividends to be paid.

Retained Earnings

Retained earnings refer to the portion of a company's profits that is retained or kept within the company instead of being paid out to shareholders as dividends, to be reinvested in business operations or to pay off debt.

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.