A Measuring Instrument Is Said to Be Reliable When It

question 2

Multiple Choice

A measuring instrument is said to be reliable when it is able to:

• A)produce a consistent result if the same thing is measured twice.
• B)produce results that are close to the expected results.
• C)predict actual behavior.
• D)covary with an independent variable.

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Definitions:

Operating Activities

Transactions and other events that affect the net income of a business, relating to its principal revenue-producing operations.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Quick Ratio

A liquidity indicator that measures a company's ability to meet short-term obligations with its most liquid assets.

Fixed Charge Coverage

A financial ratio that measures a firm's ability to cover its fixed charges, such as interest and leases, with its earnings before interest and taxes (EBIT).