Which of the Following Statements Is CORRECT

question 3

Multiple Choice

Which of the following statements is CORRECT?

• A) The AFN equation for forecasting funds requirements requires only a forecast of the firm's balance sheet.Although a forecasted income statement may help clarify the results, income statement data are not essential because funds needed relate only to the balance sheet.
• B) Dividends are paid with cash taken from the accumulated retained earnings account, hence dividend policy does not affect the AFN forecast.
• C) A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.
• D) If the ratios of assets to sales and spontaneous liabilities to sales do not remain constant, then the AFN equation will provide more accurate forecasts than the forecasted financial statements method.
• E) Any forecast of financial requirements involves determining how much money the firm will need, and this need is determined by adding together increases in assets and spontaneous liabilities and then subtracting operating income.

Understand the criteria and processes involved in diagnosing psychological disorders.

Identify and describe various psychological assessment tools and their purposes.

Recognize the limitations and criticisms of the DSM and psychological testing.

Differentiate between types of psychological tests (objective, projective) and their underlying assumptions.

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Definitions:

Therapy

Treatment methods aimed at making people feel better and function more effectively.

Humanistic

A psychological perspective that emphasizes the study of the whole person and the uniqueness of the individual's experience, focusing on self-actualization and personal growth.

Potential

The capacity to develop, grow, or come into being; latent qualities or abilities that may be developed.

Fulfilling Life

A concept referring to a life filled with meaning, satisfaction, and happiness as perceived by the individual.