Which of the Following Statements Concerning Average Error Is True

question 27

Multiple Choice

Which of the following statements concerning average error is true?

• A)A positive value indicates high bias,and a negative value indicates low bias.
• B)A positive value indicates zero bias,and a negative value indicates low bias.
• C)A negative value indicates zero bias,and a negative value indicates high bias.
• D)A positive value indicates low bias,and a negative value indicates high bias.

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Definitions:

Asset-Expense Relationship

The correlation between a company's assets and expenses, indicating how asset utilization incurs costs.

Prepaid Expense Adjusting Entries

Journal entries made at the end of an accounting period to account for expenses paid in advance but which relate to future accounting periods.

Supplies Expense

An account that represents the cost of supplies used during an accounting period, which are not held for resale.

Adjusting Journal Entry

An adjusting journal entry is made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.