For the Calculation of EVA, Current Liabilities Are Deducted from Total

question 125

Multiple Choice

For the calculation of EVA, current liabilities are deducted from total average assets for what reason?

• A) Because liabilities are not included in assets, and so they should be deducted.
• B) Because the current liabilities are due within a one year period.
• C) Because it is necessary in order to calculate the equity of the company.
• D) Because the funds needed to pay the current liabilities will not be available to generate income in the long run.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.