Method of Least Squares

question 15

Multiple Choice

method of least squares

• A)can be used to estimate the explanatory variables in a linear regression equation.
• B)can be used to estimate the slope parameters of a linear equation.
• C)minimizes the distance between the population regression line and the sample regression line.
• D)all of the above

Recognize what is included and excluded in the calculation of additional paid-in capital.

Calculate total paid-in capital and total stockholders' equity from given balance sheet data.

Understand the concept of legal capital and its implications for share value and corporate financing.

Identify and differentiate various types of stock (common, preferred, treasury) and their accounting treatment.

---

Definitions:

Partial Equity Method

An accounting method used for investments, wherein an investor recognizes its share of investee profits, but only to the extent of dividends received.

Equity Income

Income that an investment generates from dividends on stocks or mutual funds, indicating earnings derived from ownership interests in companies.

Internal Accounting Records

Documents and records kept by a company that detail its financial transactions, assets, liabilities, and equity.

Consolidated Total Expenses

The aggregate expenses of both the parent company and its subsidiaries, as presented in the consolidated financial statement.