Use the Work Sheet for Finley Company to Answer the Questions

question 33

Multiple Choice

Use the work sheet for Finley Company to answer the questions that follow.

The entry to close Dividends would be

• A)debit Retained Earnings,$3,000;credit Dividends,$3,000
• B)debit Retained Earnings,$12,000;credit Dividends,$12,000
• C)debit Dividends,$3,000;credit Retained Earnings,$3,000
• D)debit Dividends,$12,000;credit Retained Earnings,$12,000

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Definitions:

Parsimony

The principle of using the simplest or least complicated explanatory means necessary to adequately account for observed phenomena, often used in model selection.

Regression Model

A statistical technique for estimating the relationships among variables, often used for prediction and forecasting.

T-statistic

A type of statistic used in hypothesis testing, calculated from sample data to determine whether to reject the null hypothesis.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables.