Test Makers Often Examine the Correlation Between Scores on the New

question 38

Multiple Choice

Test makers often examine the correlation between scores on the new test and scores on a measure of social desirability. They do this to

• A) make certain they are measuring something that is socially appropriate.
• B) establish the discriminant validity of the new scale.
• C) ensure that people are not offended by items on the new scale.
• D) establish the face validity of the new scale.

Realize the impact of cash and accrual transactions on financial statements.

Know the application of generally accepted accounting principles (GAAP) in financial reporting.

Understand the significance of earnings per share and its disclosure requirements.

Recognize the treatment and implications of different revenue and expense categories on financial performance.