When Assessing Earnings Persistence Is Important to Determine If There

question 27

True/False

When assessing earnings persistence is important to determine if there has been any earnings management.

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Definitions:

Extinction

In behavioral psychology, it refers to the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Operant Conditioning

A learning process where behavior is controlled by consequences, such as rewards or punishments.

Respondent Conditioning

A learning process that involves creating an association between a naturally occurring stimulus and a previously neutral stimulus.

Shaping

A method of behavior training in which positive reinforcement is used to gradually guide an individual toward a desired behavior.