When a Company Provides Evidence from Previous Criterion-Related Validity Studies

question 10

Multiple Choice

When a company provides evidence from previous criterion-related validity studies conducted in other situations to show that a specific test is a valid predictor for a specific job performance,it is trying to prove the test's

• A)reliability.
• B)utility.
• C)variance.
• D)generalizability.
• E)legality.

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Definitions:

Lease Receivable

An asset representing the right to receive future lease payments from lessees under lease agreements, reflecting the value of the asset leased out.

Operating Leases

Leases in which the lessee obtains the right to use an asset for a short period of time, without assuming the risks and rewards of ownership.

Initial Direct Costs

Expenses that are directly attributable to negotiating and arranging a lease, which are added to the carrying amount of the leased asset or deducted from the leasing income.

Residual Value

is the estimated amount that an entity would currently obtain from disposing of the asset, after deducting the estimated costs of disposal, at the end of its useful life.