What Is the Difference in the Balance Forward and the Open

question 30

Essay

What is the difference in the balance forward and the open item methods of accounting for customer accounts?

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Definitions:

Correlation

Correlation is a statistical measure that expresses the extent to which two variables change together. If the variables tend to increase and decrease in relation to each other, the correlation is positive; if one increases as the other decreases, it is negative.

Construct Validity

The degree to which a measurement device accurately measures the theoretical construct it is designed to measure.

Reliability

The consistency and stability of measurements or assessments over time.

Validity

The degree to which a tool, test, or measure accurately represents or measures what it claims to.