Galton's Theory of Psychophysical Performance States That

question 331

Multiple Choice

Galton's theory of psychophysical performance states that

• A) intelligence can be measured using psychometric techniques.
• B) gifted people scored higher in psychic energy and a heightened sensitivity to external stimuli.
• C) superior intelligence is correlated with superior physical abilities.
• D) human intelligence has a biological or genetic basis.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

EBITDA Coverage Ratio

Similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payments. It is found by adding earnings before interest, taxes, depreciation, and amortization and lease payments, then dividing this total by interest charges, lease payments, and sinking fund payments over 1 minus the tax rate.

TIE

Times Interest Earned, a financial metric indicating how well a company can meet its interest obligations based on current earnings.

DSO

Days Sales Outstanding, a measure of the average number of days that a company takes to collect payment after a sale has been made.