Which of the Following Is a Characteristic of Rules-Based Accounting

question 45

Multiple Choice

Which of the following is a characteristic of rules-based accounting standards?

• A)They are highly detailed.
• B)They rely heavily on judgment by management or the auditor.
• C)They are shorter than rules-based standards.
• D)They are required by Sarbanes-Oxley.

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Definitions:

Total Variation

In statistics, a measure of the overall variability in a dataset or the total amount by which values in a data set differ from the mean.

SSR

Sum of Squares due to Regression, a measure used in statistical models to quantify how well the model explains the variability of the data.

SSE

The sum of squared errors between observed and predicted values in regression analysis, indicating the discrepancy between data points and the regression line.

Standard Error

A statistic that measures the spread of data points in a sample and indicates how accurately the sample represents the entire population.