A New Test Determines Your Score by Dividing Your Telephone

question 101

Multiple Choice

A new test determines your score by dividing your telephone number into your social security number, and then multiplying by 100. This test probably has

• A) high reliability and high validity.
• B) high reliability and low validity.
• C) low reliability and high validity.
• D) low reliability and low validity.

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Definitions:

Capital Accounts

Accounts that represent the ownership interest of investors in a company or partnership's total capital.

Capital Balances

Refers to the amounts recorded in the equity section of a company's balance sheet, representing the funds contributed by owners plus retained earnings.

Income Ratio

A financial metric used to evaluate a company's profitability by comparing its income to another metric, such as sales or assets, to assess efficiency and performance.

Capital Balance

Capital balance represents the amount of money that stakeholders have invested in a company. This can also refer to the amount of equity a company has.