When a Sentence in a Written Passage Contains an Ambiguous

question 57

Multiple Choice

When a sentence in a written passage contains an ambiguous word,

• A) people typically do not notice the ambiguity until they have finished reading the entire sentence.
• B) people apparently access only the best-known meaning of that word.
• C) people are highly unlikely to notice that the word may be ambiguous.
• D) people typically pause while they process the ambiguous word.

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Definitions:

Direct Approach

A method of income statement preparation where expenses are listed directly against revenue items to show the net income.

Indirect Approach

A method often used in preparing cash flow statements where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investment securities, as part of a company’s cash flow activities.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing equity or debt, and dividend payments.