Which Term Best Describes an Assessment That Measures What It

question 36

Multiple Choice

Which term best describes an assessment that measures what it is intended to measure?

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

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Definitions:

Accounting Rate

The accounting rate, or rate of return, measures the profitability of investments or projects, expressed as a percentage.

Discounted Cash Flows

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Initial Cost

Typically refers to the acquisition price of an asset or investment, including all expenses incurred to bring it to its intended use.

Investment

The action of dedicating financial resources in expectation of gaining profits or income.