Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) Financial ratios can indicate areas of potential strength and weakness.
• B) Financial ratios can serve as screening devices.
• C) Financial ratios are predictive.
• D) No rules of thumb apply to the interpretation of financial ratios.

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Definitions:

Internal-Unstable Attribution

An explanation for behavior emphasizing internal but changeable factors, such as mood or effort.

Lecturer

A person who gives talks or speeches on specific subjects, often in an academic or educational setting.

Cognitive Miser

A model of social cognition that characterises people as using the least complex and demanding cognitions that are able to produce generally adaptive behaviours.

Cognitive Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to quick but sometimes inaccurate judgments.