Which of the Following Statements Represents the Idea Behind Signaling

question 103

Multiple Choice

Which of the following statements represents the idea behind signaling in education?

• A) Education can turn an unproductive person into a productive person.
• B) Education increases the marginal productivity of naturally productive workers.
• C) The more naturally productive people are more inclined to educate themselves.
• D) All of the above are correct.

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Definitions:

Unadjusted Year End

The financial figures reported at the end of a fiscal year before any adjustments are made for accruals, deferrals, or other accounting entries.

Trial Balance

An accounting report that lists the balances of all ledgers accounts in order to verify that total debits equal total credits.

Factoring Arrangement Without Recourse

A financial transaction in which a business sells its receivables to a third party (a factor) at a discount, without the seller being responsible if the debtor fails to pay.

Loss on Sale of Receivables

A financial loss incurred when the sale price of accounts receivable is less than their carrying amount on the balance sheet.