Using the Coefficient of Variation Instead of the Standard Deviation

question 22

Multiple Choice

Using the coefficient of variation instead of the standard deviation accounts for the:

• A) timing of payoffs.
• B) risk attendance of managers.
• C) riskiness of different projects.
• D) size of different projects.
• E) use of a weighted average of different profits.

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Definitions:

Journal

A record where all financial transactions of a business are initially noted before they are transferred to ledger accounts.

Ledger

A comprehensive collection of a company's accounts, documenting all transactions and financial results.

Chart of Accounts

An organized list of all accounts in the general ledger of a company, each with a unique account number, used for recording transactions and preparing financial statements.

Book of Original Entry

A preliminary accounting record where transactions are first recorded; also known as a journal.