The Acid-Test Ratio Differs from the Current Ratio in That

question 134

Multiple Choice

The acid-test ratio differs from the current ratio in that:

• A) Liabilities are divided by current assets.
• B) Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio.
• C) The acid-test ratio measures profitability and the current ratio does not.
• D) The acid-test ratio excludes short-term investments from the calculation.
• E) The acid-test ratio is a measure of liquidity but the current ratio is not.

Calculate expected frequencies in chi-square tests.

Understand and calculate effect sizes for chi-square tests.

Distinguish between parametric and nonparametric statistical tests and their assumptions.

Apply chi-square tests to assess independence between two categorical variables.

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Definitions:

Excitation-Transfer Model

The expression of aggression is a function of learnt behaviour, some excitation from another source, and the person’s interpretation of the arousal state.

Arousal

A psychological and physiological state of being awake and reactive to stimuli.

Social Learning Theory

The view championed by Bandura that human social behaviour is not innate but learnt from appropriate models.

Vicarious Experience

Learning or feeling an emotional response through the experiences of another person, rather than through direct personal experience.