Which One of the Following Statements Is Correct

question 106

Multiple Choice

Which one of the following statements is correct?

• A) Book values should always be given precedence over market values.
• B) Financial statements are frequently the basis used for performance evaluations.
• C) Historical information has no value when predicting the future.
• D) Potential lenders place little value on financial statement information.
• E) Reviewing financial information over time has very limited value.

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Definitions:

Withdrawal

An increase in the intensity of the opponent B state following the termination of the event.

Barbiturate

A class of drugs derived from barbituric acid that are used as sedatives, hypnotics, and anticonvulsants.

Instinctive Behavior

Actions or reactions that an organism is born with, such as reflexes and fixed action patterns, that are not learned.

Sign Stimulus

A distinctive environmental event that can activate the innate releasing mechanism (IRM) and release a fixed action pattern.