The Key Numbers That Financial Managers Use to Calculate Ratios

question 107

Multiple Choice

The key numbers that financial managers use to calculate ratios usually come from which of the following financial statements of a company?

• A) prospectus and operating budget
• B) statement of cash flows
• C) balance sheet and income statement
• D) pro forma statements

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.