When Alternative Measures of the Same Construct Correlate Highly with a Test

question 16

Multiple Choice

When alternative measures of the same construct correlate highly with a test, the test can be described as having high

• A)convergent validity.
• B)discriminant validity.
• C)face validity.
• D)predictive validity.

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Definitions:

Salvage Value

The anticipated market value of an asset upon completing its service life.

Matching Principle

An accounting principle that requires expenses to be matched with the revenues they helped to generate in the same period.

Amortization

The gradual reduction of a debt over a period of time or the spreading out of capital expenses related to intangible assets over their useful life.

Matching Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped generate.