In Which of the Following Contexts Would Accountants Be Required

question 17

Multiple Choice

In which of the following contexts would accountants be required to exercise professional judgement?

• A) Determining depreciation method used for non-current assets.
• B) Estimating net realisable value of inventories.
• C) Deciding which model to use to measure value of property, plant and equipment after initial recognition.
• D) All of the options are correct.

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Definitions:

Criterion Variable

The variable/score that is predicted based upon an individual’s score on another variable (the predictor variable).

Structural Equation Models (SEM)

A statistical technique that allows for the testing and estimation of complex relationships between observed and latent variables.

Third-Variable Problem

A situation in correlational research where a variable not studied is the true cause of the relationship observed between the variables of interest.

Variance

A measure of the variability of scores about a mean; the mean of the sum of squared deviations of scores from the group mean.