The Purpose of Coding Open-Ended Questions Is to Reduce the Large

question 65

True/False

The purpose of coding open-ended questions is to reduce the large number of individual responses to a few general categories of answers that can be assigned numerical codes.

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Definitions:

Life Insurance Premiums

Regular payments made to an insurance company to maintain a life insurance policy.

Permanent Difference

Items that cause a difference between the tax base of assets or liabilities and their carrying amount in financial statements, affecting taxable income or taxes payable.

Deferred Tax Asset

An accounting term for items that will reduce future tax payments, such as carryover losses or credits.

Book Income

The net income reported by a company as per its financial statements, reflecting its accounting principles rather than taxable income.