A Ranking Scale in Which Numbers Are Assigned to Objects

question 21

Multiple Choice

A ranking scale in which numbers are assigned to objects to indicate the relative extent to which some characteristic is possessed is called a(n) ________.

• A) nominal scale
• B) ordinal scale
• C) interval scale
• D) ratio scale
• E) random scale

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Definitions:

Amortization

The gradual reduction of an intangible asset's value over time or the process of spreading payments over multiple periods, such as with loans.

Unrecognized Gains

Profits that have been earned but not yet realized or reported in the financial statements.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Defined Benefit Pension Plans

Pension plans that promise a specified monthly benefit at retirement, which may be calculated through a formula based on earnings and years of service.