Which of the Following Is True About Deseasonalizing Data

question 21

Multiple Choice

Which of the following is true about deseasonalizing data?

• A) The sum of the seasonal indexes should be 1.0.
• B) The time series is deseasonalized by multiplying each value by its seasonal index.
• C) Deseasonalizing a time series reduces autocorrelation.
• D) Deseasonalizing a time series can make it easier to see a trend.

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Definitions:

Corrected Trial Balance

A trial balance prepared after all adjustments, errors, and corrections have been made, serving as the basis for financial statement preparation.

Accounts Debited

Accounts that are increased with a debit entry, typically including assets and expenses.

Trial Balance Totals

The aggregate amounts of all debit and credit balances in a company's ledger accounts at a specific point in time, used to ensure that debits equal credits.

Cash Withdrawal

The process of taking out cash from a bank account or the act of receiving cash from any fund, essentially reducing the balance.