The Following Ages (Rounded to the Nearest Whole Year) of Employees

question 42

Multiple Choice

The following ages (rounded to the nearest whole year) of employees at a large company that were grouped into a distribution with class limits: 20 up to 30
30 up to 40
40 up to 50
50 up to 60
60 up to 70
(i. The class limits for the class 50 up to 60 class are 50 and 58.
(ii. The midpoint for the class 40 up to 50 is 45.
(iii) The class interval is 10.

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

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Definitions:

Indefinite Useful Life

An intangible asset that is not expected to deplete over a measurable period of time, and hence is not amortized.

Consolidated Income Statement

A financial statement that shows the aggregate operating results of a parent company and its subsidiaries as if the group were a single entity.

FVE Method

FVE Method, or Fair Value Estimation Method, involves estimating the fair value of an asset or liability, taking into account market conditions and other influencing factors.

Equity Method

An accounting technique used when a company invests in another company and has significant influence, typically reflected by owning 20% to 50% of the voting stock, whereby the investment is initially recorded at cost and subsequently adjusted for the investing company's share of the investee's net profits or losses.