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Roel Heard a Spoof of the News on the Daily

question 136

Multiple Choice

Roel heard a spoof of the news on The Daily Show. The next week he describes the event in the spoof as having really happened. Roel's false belief that the news story was true is an example of:


Definitions:

Permanent Capital

The portion of a company's capital that is not expected to be paid back or withdrawn within a year, including equity and long-term debt.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Common Stock Dividend Distributable

A liability on the balance sheet representing the amount of dividends declared by a company but not yet paid to shareholders.

Paid-In Capital

Section of stockholders’ equity representing what stockholders have invested into the corporation.

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