Levene's Test Tests Whether

question 1

Multiple Choice

Levene's test tests whether?

• A) Data are normally distributed
• B) The variances in different groups are equal
• C) The assumption of sphericity has been met
• D) Group means differ

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Definitions:

Bad Debts Expense

An expense account that represents accounts receivable that a company does not expect to collect.

Unadjusted Trial Balance

A listing of all the accounts and their balances from the ledger, before any adjustments, used to check the arithmetic accuracy of bookkeeping.

Aging of Receivable Method

An accounting technique used to estimate uncollectible debts by analyzing the age of accounts receivable.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may ultimately not be collectible.