Standardization May Be Desirable Because It Is Easier to Compare

question 86

True/False

Standardization may be desirable because it is easier to compare the beta coefficients than it is to compare the raw coefficients.

---

Definitions:

Income Summary

An account in which the revenues and expenses are summarized during the closing process, used to transfer net income or loss to owner's equity.

Net Income

The net income a company earns once all costs and taxes are deducted from its total revenues.

Rent Expense

Costs incurred from leasing property or equipment for business operations.

Worksheet

A financial document used by accountants to prepare adjusting entries and end-of-period financial statements.