Devon and Liz Are Studying for Their Test on American

question 15

Multiple Choice

Devon and Liz are studying for their test on American history.Devon asks Liz,"Hey,do you remember who the fourth president of the United States was?" Liz pauses for a few seconds and then answers,"James Madison." As soon as she answers,her cell phone rings.It is her friend Carla,and Liz talks to her for about 10 minutes.When she gets off the phone,Devon says,"Liz,I didn't hear you.Who was the fourth president?" Liz thinks for a few moments and then realizes that she has forgotten the answer.This scenario illustrates the importance of memory:

• A)misattribution.
• B)rehearsal.
• C)consolidation.
• D)reconsolidation.

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Definitions:

Return On Equity

A measure of financial performance calculated by dividing net income by shareholder equity, indicating how effectively a company uses investments to generate earnings.

Average Total Stockholders' Equity

Average total stockholders' equity calculates the mean equity held by shareholders over a given period, indicating the ownership value in a company.

Net Income

Net Income is the total earnings computed as revenues minus expenses, taxes, and the cost of goods sold, indicating a company's profitability over a specified period.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and receivables).