Principal Component Analysis Is

question 20

Multiple Choice

Principal component analysis is

• A) Used to summarize data whilst retaining maximum variance.
• B) Used to summarize data whilst retaining minimum variance.
• C) Derive as few factors as possible.
• D) Derive as many solutions as possible.

---

Definitions:

Bank Reconciliation

The method of aligning the balance in a company's financial records for a cash account with the relevant details on a bank statement.

Deposits in Transit

Funds that have been received and recorded by a business but not yet processed or acknowledged by the bank.

Allowance Method

An accounting technique used to estimate and account for bad debts where the company anticipates a certain percentage of accounts receivable will be uncollectible.