Categorical Items Must Be ______ and There Should Be No

question 24

Multiple Choice

Categorical items must be ______ and there should be no overlap between categories.

• A) responsive
• B) exhaustive
• C) mutually exclusive
• D) comprehensive

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities, essentially the company's total equity.

Amortization

The gradual repayment or write-off of an asset over a specified period, typically used for loans, mortgages, or intangible assets.

Depreciation Adjustment

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Consolidation Purposes

Consolidation purposes involve reasons or objectives behind combining financial statements of multiple entities within a single corporate group, mainly for accurate financial reporting, analysis, and decision-making.