Leen Is About to Write the GREs (Graduate Record Examination)as

question 128

Multiple Choice

Leen is about to write the GREs (Graduate Record Examination) as a prerequisite for getting into graduate school.She is extremely nervous about how she will do here,because she knows that the graduate schools really look at your scores on the GREs and use it to sift through applicants that are likely to succeed (or NOT) in graduate school.If this assumption made by graduate schools is correct,one would have to say that the GRE has high

• A) reliability.
• B) standardization.
• C) predictive validity.
• D) content validity.

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Definitions:

Valuation Allowance

A reserve set aside against deferred tax assets due to uncertainty regarding their realization in the future.

Fair Value Adjustments

Fair value adjustments are accounting practices to revise the book value of an asset or liability to its current market value.

Trading Security

A financial asset that a company holds primarily for the purpose of selling it in the short term to profit from price fluctuations.

Fair Value

The estimated market value of an asset or liability, based on current market conditions.