The Data in Q10 Produce the Following Results

question 5

Multiple Choice

The data in Q10 produce the following results. What conclusion should be drawn?
Test Statistics (b)

• A) There is a significant difference in rating, with Business Plan A being rated higher than Business Plan B.
• B) There is no significant difference in ratings
• C) There is a significant difference in rating, with Business Plan A being rated lower than Business Plan B.
• D) Not enough information is available to make a decision.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Adjustments

Entries made in accounting records to correct or update financial information.

Accrued Items

Expenses or revenues that have been incurred or earned but have not yet been recorded or paid.

Time Period Assumption

An accounting principle that assumes a business's complex financial activities can be divided into shorter, discrete time periods, such as months, quarters, or years.