Which of the Following Statements Is True Regarding Reliability and Validity

question 35

Multiple Choice

Which of the following statements is true regarding reliability and validity?

• A)Reliability and validity are directly proportional to each other.
• B)Reliability and validity are inversely proportional to each other.
• C)A measure must be reliable if it is to have any validity.
• D)Every measure that is reliable has high degree of validity.
• E)Reliability is a necessary and sufficient condition for validity.

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Definitions:

Corporation

A legal entity recognized by law as separate from its owners, with the ability to own assets, incur liabilities, and sell shares.

Retained Earnings

Accumulated net income that a company has not distributed to its shareholders as dividends, reinvested in the business.

Dividends

Payments made by a corporation to its shareholder members, typically derived from profit.

Statement of Stockholder's Equity

A financial statement that shows changes in the value of a company's equity over a specific period, including shares issued and dividends paid.