All of the Following Statements Are True EXCEPT

question 90

Multiple Choice

All of the following statements are true EXCEPT:

• A)retained earnings is common stock minus paid in capital.
• B)retained earnings are generated when a firm has excess cash.
• C)retained earnings are the accumulated profits not paid out in dividends.
• D)All of the above.

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Definitions:

Discriminant Validity

The degree to which a concept or measurement is not associated with other concepts or measurements it's supposed to be unrelated to.

Predictive Validity

The extent to which a test, measurement, or tool can accurately forecast or predict a specific outcome.

Face Validity

Refers to the extent to which a test appears to measure what it is intended to measure, based purely on its surface characteristics.

Mean Score

The average value obtained by dividing the sum of all values in a set by the number of values in that set; used as a measure of central tendency in statistics.