The Error That Occurs When Participants Alter Their True Behavior

question 7

Multiple Choice

The error that occurs when participants alter their true behavior due to the presence of the observer is known as _____.

• A) observer drift
• B) halo effect
• C) social desirability responding
• D) self-serving bias
• E) reactivity response

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Definitions:

Inventory on Credit

Inventory on credit refers to the purchase of goods that will be sold in the future without paying cash upfront, creating accounts payable for the business.

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculating if it can meet its short-term obligations with its most liquid assets, excluding inventory.

Accounts Receivable

Accounts Receivable is the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities or money owed by a business to its suppliers or creditors for goods or services received.