Which of the Following Is True Regarding the Committee on Accounting

question 26

Multiple Choice

Which of the following is true regarding the Committee on Accounting Procedures (CAP) ?

• A)It developed a comprehensive statement of accounting principles.
• B)It adopted a policy of attacking specific problems and recommending preferred methods of accounting when possible.
• C)It was formed by the SEC in 1936.
• D)It eliminated the use of alternative accounting practices by establishing an underlying accounting theory.

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Definitions:

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Insignificant Variables

Variables in a statistical model that do not significantly influence the outcome of the model.

Step-wise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure.

Bonferroni Criterion

A statistical correction method used to address the problem of multiple comparisons by lowering the threshold for statistical significance.