The Ratio That Indicates the Amount of Assets That Are

question 113

Multiple Choice

The ratio that indicates the amount of assets that are financed by creditors is:

• A)debt to stockholders' equity.
• B)debt to total retained earnings ratio.
• C)rate of return on common stockholders' equity.
• D)None of the above.

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Definitions:

Social Influence

The effect that the words, actions, or mere presence of other people have on our beliefs, feelings, attitudes, or behavior.

Heuristic-Systematic Model

A dual-process theory of persuasion that suggests there are two ways people process information: through heuristics (quick, automatic thinking) and systematically (deep, thoughtful analysis).

Systematic Processing

A mode of thinking in which individuals take a more analytical and comprehensive path to evaluating information, as opposed to relying on general impressions.

Disconfirmation Bias

The tendency to notice, refute and regard as weak, arguments that contradict our prior beliefs.