Which of the Following Is True

question 84

Multiple Choice

Which of the following is true?

• A) Forecast errors cannot be negative.
• B) Forecast errors are negative when the forecasted rate exceeds the realized rate.
• C) Absolute forecast errors are negative when the forecasted rate exceeds the realized rate.
• D) None of the above.

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Definitions:

Modified Cash Basis

An accounting method that combines elements of both cash and accrual accounting, recognizing revenues when they are received and expenses when they are paid, with some adjustments.

Warranty Revenue Recognition

The accounting process of recognizing revenue from warranties provided, typically over the period the warranty covers.

Coupon Redemption

The process of a bondholder or an investor submitting a bond's coupon to the issuer to receive interest payment.

Advertising Cost

Expenses incurred to promote products or services to potential consumers through various media channels.