After Reading the Paragraph Below, Answer the Questions That Follow

question 21

Multiple Choice

After reading the paragraph below, answer the questions that follow.
Researchers set up a study to determine whether large doses of a nutritional supplement would shorten the length of time it takes to recover from a cold. Three thousand volunteers were split into two groups. For two weeks, members of group A took 3,000 mg of the supplement daily. Group B received 3,000 mg of a placebo. At the end of the two-week period, the researchers inserted live cold viruses directly into the noses of all the volunteers. The volunteers in both group A and group B continued to take their daily pills. All the volunteers got colds, and there was no significant difference in the length of time the colds lasted.
-To have confidence that the results of the experiment were valid, you'd also want to know

• A)whether any volunteers had colds at the start of the experiment.
• B)whether the volunteers exercised daily.
• C)whether the volunteers all worked for the same company.
• D)what the volunteers ate during the experiment.

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Definitions:

Stock Splits

Corporate actions that increase the number of shares outstanding, reducing the price per share but not changing the company's overall market capitalization.

Stock Dividends

Distribution of additional shares of the company's stock to shareholders instead of cash dividends.

Retained Earnings

The cumulative amount of net income left over for a company after it has paid out dividends to its shareholders, often reinvested into the company.

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments for changes in accounting policies, presented in the current period's equity section.