(I a Frequency Distribution Is Grouping of Data into Classes

question 73

Multiple Choice

(i. A frequency distribution is grouping of data into classes showing the number of observations in each class. (ii) In constructing a frequency distribution, you should try to have open-ended classes such as "Under $100" and "$1,000 and over".
(iii) A cumulative frequency distribution is used when we want to determine how many observations lie above or below certain values.

• A) (i), (ii) and (iii) are all correct statements.
• B) (i) and, (ii) are correct statements but not (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).

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Definitions:

Beginning Balances

The balances of accounts at the start of an accounting period, carried forward from the end of the previous period.

Accounts Receivable

The amount customers are yet to pay a company for goods or services that have already been delivered or performed.

Income Statement

A financial statement that reports a company's financial performance, including revenues, expenses, and profit, over a specific period.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations section is used rather than being derived from the income statement.