Contingent Securities Such as Common Stocks and Bonds Affect the Reporting

question 120

True/False

Contingent securities such as common stocks and bonds affect the reporting of a firm's earnings per share (EPS).

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Definitions:

Shaping

A method used in behavioral psychology to gradually train a new behavior by reinforcing successive approximations of the desired behavior.

Successive Approximations

A technique in behaviorism where behaviors are broken down into small tasks and each one is mastered in turn leading towards a target behavior.

Desired Response

The expected or targeted reaction or outcome from a given stimulus or action.

Discriminative Stimulus

A stimulus in the presence of which a particular behavior is reinforced, helping the individual to distinguish when certain behaviors are likely to be rewarded.