A Valuation Method That Is More Realistic Than the Balance

question 41

Multiple Choice

A valuation method that is more realistic than the balance sheet because it adjusts book value to reflect actual market value is the:

• A)excess-earnings method.
• B)market approach.
• C)capitalization method.
• D)adjusted balance sheet method.

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Definitions:

Higher-Order Conditioning

A conditioning process where a stimulus that's associated with a conditioned stimulus also becomes a conditioned stimulus itself.

Spontaneous Recovery

The reappearance of an extinguished response (in a weaker form) when an organism is exposed to the original conditioned stimulus following a rest period.

Extinction

In behavioral psychology, the process by which a conditioned response decreases in frequency and eventually disappears after the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that becomes associated with a significant stimulus.