Indexes Are Similar to Scales in That Both

question 42

Multiple Choice

Indexes are similar to scales in that both

• A) are composite measures of concepts.
• B) reflect an arbitrary combination of items.
• C) are designed and tested for unidimensional measurement.
• D) rely exclusively on survey data.

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Definitions:

Supplies Expense

The cost of supplies used during an accounting period, typically classified as an operating expense.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Fixed Asset Account

An account on a company’s balance sheet that reports the cost and accumulated depreciation of assets with a useful life of more than one year.