Even Though Primary Data Can Be Especially Valuable to an Individual

question 15

Multiple Choice

Even though primary data can be especially valuable to an individual firm, it often plays "second fiddle" to secondary data because

• A)secondary data is much more up-to-date and tailored to a specific firm or industry.
• B)secondary data, although far more expensive, is also much more reliable.
• C)primary data is usually more costly and time consuming to collect.
• D)primary data can be accessed by virtually anyone so the information generated loses much of its value.
• E)primary data is less fact and figure based; it is more subjective and therefore more vulnerable to misinterpretation.

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Definitions:

Normal Balance

Reflects the expected balance orientation (debit for assets and expenses, credit for liabilities, equity, and revenues) of an account in double-entry bookkeeping.

Financial Statement

A written record that conveys the business activities and financial performance of a company, typically including the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Refers to accounts on a company's balance sheet that are carried over from one accounting period to the next, with permanent indicating long-term accounts and temporary indicating accounts that are closed at the end of each period.

Coal Deposit

A geological formation containing a natural accumulation of coal, which can be mined for use as a fuel.