You Are Surprised by the Fact That You Cannot Remember

question 319

Multiple Choice

You are surprised by the fact that you cannot remember if Abraham Lincoln's head faces the left or the right on a penny. This is all the more surprising given the fact that you work with money at your job on nearly a daily basis. What would best explain such an inability to recall this information?

• A) encoding failure
• B) decay theory
• C) interference theory
• D) distributed practice effect

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Definitions:

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects receivables from customers, indicating the number of times average receivables are collected during a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.