Items That Are Dissimilar in Nature Must Be Presented Separately

question 17

Multiple Choice

Items that are dissimilar in nature must be presented separately in financial statements unless:

• A)they are immaterial;
• B)they are financial items in which case they can be off-set;
• C)the directors approve of an aggregation of the items;
• D)the auditors approval to aggregate the items is obtained.

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Definitions:

Null Hypothesis

A statistical hypothesis that suggests there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.

Ratio

A quantitative relationship between two numbers showing the number of times one value contains or is contained within the other.

F-test Statistic

A value used in statistics to compare two variances and determine if they are significantly different, often used in the analysis of variance (ANOVA) tests.

Calculated

The result obtained from mathematical or statistical operations on data or values.