Which One of the Following Statements Is Correct

question 89

Multiple Choice

Which one of the following statements is correct?

• A)Book values should always be given precedence over market values.
• B)Financial statements are frequently used as the basis for performance evaluations.
• C)Historical information provides no value to someone who is predicting future performance.
• D)Potential lenders place little value on financial statement information.
• E)Reviewing financial information over time has very limited value.

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Definitions:

Nominal Level

The simplest level of measurement that classifies data into distinct categories within which no order or ranking can be inferred.

Research Hypothesis

A statement made by researchers predicting a potential outcome or relationship between variables in a study, to be tested through empirical research.

Ordinal Level

A measurement scale that categorizes data into ordered categories that are meaningful but not mathematically equidistant.

Spearman Rank-Order

A non-parametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.