What Effect Does the Improper Account Classification of Payroll Have

question 80

Multiple Choice

What effect does the improper account classification of payroll have when payroll is a significant portion of inventory?

• A) increase asset valuations
• B) decrease asset valuations
• C) either A or B
• D) not affect asset valuations

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Definitions:

Item Analysis

A series of statistical tests and procedures that can be used to assess for homogeneity in a test.

Construct Validity

The degree to which a test accurately measures the theoretical construct or concept it is intended to measure.

Content Validity

The ability of an instrument to fully assess or measure a construct of interest by sufficiently sampling from the entire universe of items for which the instrument was designed to sample.

Well-Established Construct

A concept or theory that has been extensively researched and validated, demonstrating consistent and reliable findings across studies.