Which of the Following Would Be Increased by an Accounting

question 7

Multiple Choice

Which of the following would be increased by an accounting policy change involving transfer from retained profits to general reserve?

• A) Shareholders' equity
• B) Liabilities
• C) Net profit
• D) None of the answers provided

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Definitions:

Internal Consistency

A measure of the reliability of a psychological test or survey, reflecting the extent to which all items assess the same characteristic.

Face Validity

The extent to which a test or measurement appears effective in terms of its stated aims to those taking or observing it, on the surface level.

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Correlate

To possess a reciprocal relationship or link, where one element influences or relies upon another.