Which of the Following Persons Is Most Likely to Maintain

question 20

Multiple Choice

Which of the following persons is most likely to maintain good intellectual functioning into old age?

• A) Sarah, of average intelligence, who does the crossword puzzle every day and takes a brisk one-hour walk each morning
• B) Jim, who has a high IQ and reads regularly, but rarely exercises
• C) Paul, who has a high IQ, runs three miles each day, and plays handball regularly, but doesn't read even the daily paper
• D) We do not have enough information to make a prediction.

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Definitions:

Amortization Policies

Guidelines or practices a company follows to systematically reduce the book value of its intangible assets over their useful life.

Capital Lease

A long-term lease agreement considered to be a purchase of the asset for accounting purposes, where the lessee assumes both the risks and benefits of asset ownership.

Residual Value

The forecasted sale price of an asset at the conclusion of its operational lifespan.

Economic Life

The period during which an asset is expected to be usable for the purpose it was acquired.