If an Assessment Is Shown to Measure What It Is

question 22

Multiple Choice

If an assessment is shown to measure what it is intended to measure, it can be said to be which of the following?

• A)reliable
• B)sensitive
• C)standardized
• D)valid

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expense.

Income Tax Expense

The total amount of income tax a company is obligated to pay to tax authorities, calculated based on its taxable income.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by shareholders' equity.