What Is the Difference Between an Interval and a Ratio

question 5

Multiple Choice

What is the difference between an interval and a ratio scale? A ratio scale _____ while an interval scales does not.

• A) uses equal intervals
• B) has an absolute zero
• C) indicates order
• D) gives numerical information

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Definitions:

Merchandise

Goods that are bought and sold by a business in the regular course of its operation.

Adjusted Trial Balance

A statement prepared after adjusting entries are made, used to verify the balance of debits and credits before preparing financial statements.

End-of-period Spreadsheet

A tool used in accounting to gather all the financial data and adjustments needed to prepare financial statements at the end of an accounting period.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.