Common Size Financial Statements Make It Easier to Compare Firms

question 78

Multiple Choice

Common size financial statements make it easier to compare firms

• A)of different sizes.
• B)in different industries.
• C)with different degree of leverage.
• D)that use different inventory valuation methods (FIFO vs.LIFO).

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Definitions:

Negative Reinforcers

An aversive stimulus whose removal following a behavior increases the likelihood of that behavior being repeated.

Conditioned Stimulus

An initially neutral signal that, once it has been linked with an unconditioned stimulus, ultimately leads to eliciting a conditioned reaction.

Unconditioned Stimulus

In behavioral psychology, an event that naturally and automatically triggers a response without prior learning.

Extinction

In conditioning, the process through which a previously reinforced behavior is weakened by the absence of reinforcement.