Alone in Your Dim, Unheated Room You Light One Candle ${ } ^ { \circ } F$

question 8

Multiple Choice

Alone in your dim, unheated room you light one candle rather than curse the darkness.Disgusted by the mess, you walk directly away from the candle.The temperature (in ${ } ^ { \circ } F$ ) and illumination (in % of one candle power) decrease as your distance (in feet) from the candle increases.The table below shows this information. $\begin{array}{ccc}\text { distance(feet) } & \text { Temp. }\left({ }^{\circ} \mathrm{F}\right) & \begin{array}{c}\text { illumination } \\(\%) \end{array} \\0 & 55 & 100 \\1 & 54.5 & 85 \\2 & 53.5 & 75 \\3 & 52 & 67 \\4 & 50 & 60 \\5 & 47 & 56 \\6 & 43.5 & 53\end{array}$ You can still read your watch when the illumination is about 55%, so somewhere between 5 and 6 feet.Can you read your watch at 5.5 feet?

• A)yes
• B)no
• C)cannot tell

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Definitions:

Basic Assumptions

Fundamental beliefs or principles that underlie the financial accounting system, including economic entity, monetary unit, time period, and going concern.

Internal Growth Rates

The maximum rate at which a company can expand using only internal financial resources without resorting to borrowing or seeking new equity investment.

External Financing Needs (EFN)

The amount of funding a business requires from external sources to finance its planned growth or expansion activities.

Negative EFN

External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.