In the 1950s, George Miller Estimated the Number of Items

question 243

Multiple Choice

In the 1950s, George Miller estimated the number of items that could be stored in short-term memory to be the magic number __________.

• A) five, plus or minus four
• B) seven, plus or minus two
• C) nine, plus or minus three
• D) 11, plus or minus one

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Definitions:

Prior Period

Prior period refers to any accounting period that preceded the current reporting period, typically used in financial reporting and analysis.

Current Position Analysis

A company’s ability to pay its current liabilities.

Current Liabilities

Short-term financial obligations due within one year or within the normal operating cycle, such as accounts payable and short-term loans.

Vertical Analysis

An approach to analyzing financial statements where every item within the three primary account categories (assets, liabilities, and equity) on a balance sheet is shown as a percentage of the total category.