How Can You Tell If a Company Is Taking Big

question 150

Multiple Choice

How can you tell if a company is taking big bath charges this year?

• A)Compare this year's accounts receivable with last year's.If this year's accounts receivable are much bigger,there must have been many charges.
• B)Compare this year's income statement with several previous years',looking for unusual expenses or write-offs.
• C)Compare this year's cash flow from operating activities with several previous years'.If this year's cash flow from operating activities is much smaller,there must have been many charges.
• D)Look for a note titled "Big Bath Charges" in the annual report.

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Definitions:

Operational Sex Ratios

The ratio of sexually competing males to fertilizable females at any given time within a population, influencing mating behavior.

Male-Biased

Refers to circumstances or patterns that disproportionately favor males, such as in survival, dispersal, or resources allocation.

Bateman's Principle

A concept in sexual selection that suggests males have greater variance in reproductive success than females due to their investment in mating.

Reproductive Variance

Reproductive variance refers to the variation in reproductive success among individuals within a population.