Factor Analysis May Not Be Appropriate in All of the Following

question 35

Multiple Choice

Factor analysis may not be appropriate in all of the following situations except ________.

• A) the variables are not correlated
• B) small values of the KMO statistic are found
• C) a small value for Bartlett's test of sphericity is found
• D) the variables are correlated

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Definitions:

Voucher Journal

A record that details every financial transaction of a business, paired with the documentation that supports the transaction as a part of the accounting system.

Voucher System

A control mechanism in accounting that ensures all purchases and expenditures are properly authorized before payment is made.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.

Voucher System

A control mechanism in accounting that involves authorization and documentation before a financial transaction is made.