Performance-Simulation Tests Have Lower Face Validity (Which Measures Whether Applicants

question 71

True/False

Performance-simulation tests have lower face validity (which measures whether applicants perceive the measures to be accurate) than written tests.

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Definitions:

Available-for-sale Securities

Financial assets not classified as held-to-maturity or trading securities, which can be sold in response to needs for liquidity or changes in interest rates, among other reasons.

Recorded

The act of documenting financial transactions in the accounting records.

Controlling Interest

Ownership of a sufficient portion of a company's stock to influence or control its activities and decisions.

Valuation Allowance Account

An account used to offset the value of deferred tax assets due to the likelihood that they will not be realized.