If a Parameter Is Computed from a Set of Data

question 3

Multiple Choice

If a parameter is computed from a set of data, which of the following statements is true?

• A) The data are obtained from a census.
• B) The data are obtained from a random sample.
• C) The data is from a sample that is representative of the population.
• D) The data are obtained from a stratified sample.
• E) The data are obtained from a convenience sample.

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Definitions:

Acquisition Differential Amortization

The process of gradually expensing the premium paid over the fair value of the net assets acquired in a business combination, affecting income statements over time.

Straight Line Amortization

A method of systematically reducing the carrying amount of an intangible asset over its useful life in equal installments.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies, by recording such investments at cost and periodically adjusting to reflect the share in profits or losses.

Impairment Loss

A financial accounting concept that represents the reduction in the recoverable amount of an asset below its carrying amount.