According to the Situation Model of Text Processing

question 19

Multiple Choice

According to the situation model of text processing,

• A) people create a mental representation of what the text is about in terms of information about phrases, sentences, and paragraphs.
• B) people create a mental representation of what the text is about in terms of people, objects, locations, and events.
• C) it will take longer to understand a story that involves a complex series of situations.
• D) people draw inferences about what is happening in a story by considering both local and global connections.

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Definitions:

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity by calculating the present value of expected future cash flows.

Accrual Accounting

A method in accounting where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Payback Method

A capital budgeting technique that calculates the time needed to recoup the initial investment in a project.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.