In Order to Normalize the Historical Financial Data of the Target

question 23

True/False

In order to normalize the historical financial data of the target firm, it may be necessary to subtract large increases in and add back large decreases in non-recurring expenses from operating profits.

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Definitions:

Conditioned Response

A learned reaction or response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that unconditionally, naturally, and automatically triggers a response without any learning process.

Observational Learning

Gaining understanding by observing the conduct of others and the consequences of that conduct.