Imagine That You Are Playing a Game of Darts

question 268

Multiple Choice

Imagine that you are playing a game of darts. You're aiming for the 'bullseye' (i.e. the center of the board) but keep missing. All of your darts land closely clustered together, just below the board itself. With respect to reliability and validity, which of the following statements best describes this pattern?

• A)low validity, low reliability
• B)high validity, high reliability
• C)low validity, high reliability
• D)high validity, low reliability
• E)None of these description match the pattern of dart throws.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Current Liabilities

Financial obligations a company owes and is required to settle within a year.

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets.