In Computing Descriptive Statistics from Grouped Data

question 57

Multiple Choice

In computing descriptive statistics from grouped data,

• A)data values are treated as if they occur at the midpoint of a class
• B)the grouped data result is more accurate than the ungrouped result
• C)the grouped data computations are used only when a population is being analyzed
• D)All of these answers are correct.

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Definitions:

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction happens.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized and recorded in the financial statements.

Revaluation Surplus

An increase in the value of an asset that is reflected in the books of accounts, primarily through a revaluation process.

Cash-Basis Expenses

Expenses recorded when cash is actually paid out, under the cash basis of accounting, as opposed to the accrual basis which recognizes expenses when they are incurred.