As a Condition for a Test's Validity, a Test's Reliability

question 218

Multiple Choice

As a condition for a test's validity, a test's reliability is:

• A)necessary.
• B)sufficient.
• C)both necessary and sufficient.
• D)neither necessary nor sufficient.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, used in its financial reporting.

Reporting Entity

An entity for which there are users who rely on its financial statements for information about its economic activities.

Financing

The act of providing funds for business activities, making purchases, or investing, including methods such as loans, equity investment, and other mechanisms of raising capital.

Presentation Currency

The currency in which financial statements are presented by a company.