Which of the Following (Historically Inaccurate) Examples Best Demonstrates the Process

question 12

Multiple Choice

Which of the following (historically inaccurate) examples best demonstrates the process of the ratchet effect?

• A) Kesha brushes her teeth with a bottle of whiskey, but Lady Gaga gives her a tube of toothpaste because it cleans teeth better.
• B) Wolverine and Thor independently create the first hammers.Wolverine's hammer is simply a rock, whereas Thor's hammer has a metal head and a long handle.
• C) Serena Williams demonstrates how to use a tennis racquet to hit a ball, and everyone then tries to figure out how the racquet can be used to hit a ball.
• D) Marx creates a new political ideology, Lenin builds on that ideology, and Stalin further expands on it.
• E) Tiger Woods demonstrates how to use a golf club to hit a ball, and everyone mimics Tiger's movements with his or her golf club.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company.

Inventory Account

An account on the balance sheet that reports the value of a company's goods that are unsold at the end of the accounting period.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Cash Dividends

Profits paid out to shareholders by a corporation from its earnings in the form of cash.