Judy Thinks It's Going to Rain Today, So She Behaves

question 40

Multiple Choice

Judy thinks it's going to rain today, so she behaves in ways that are consistent with that prediction (e.g., she wears her raincoat, she carries her umbrella) . In fact, it does rain, just as she predicted. Is this an example of a self-fulfilling prophecy? Pick the correct answer and explanation.

• A) Yes, because she predicted it would rain, and it did.
• B) No, because she did not communicate her prediction to others.
• C) Yes, because she behaved in ways consistent with her prediction.
• D) No, because her behaviors did not cause the prediction to come true.

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Definitions:

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.

Interim Financial Statements

Financial reports that cover a period shorter than a fiscal year, usually quarterly or semi-annually, providing insights into a company's financial status throughout the year.

Work Sheet

An internal document used by accountants to organize and adjust financial information before generating official financial statements.

Net Income

The profit amount left for a company following the subtraction of all expenditures and tax payments from its gross revenue.