Generally, Firms with High Levels of Intangible Assets Tend to Report

question 35

Multiple Choice

Generally, firms with high levels of intangible assets tend to report (all else equal)

• A)lower than actual ROI on their financial statements.
• B)higher than actual ROI on their financial statements.
• C)the same as the actual ROI on their financial statements.
• D)No general relation exists.

---

Definitions:

Contrasted-Groups Method

A statistical method used in psychometrics to validate the effectiveness of a test by comparing the scores of groups with known differing characteristics.

Validity

The degree to which a test, tool, or study accurately measures or assesses what it is intended to.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Validity

The extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.