______ Are Abstractions That Cannot Be Observed Directly but That

question 13

Multiple Choice

______ are abstractions that cannot be observed directly but that can be defined based upon that which is observable.

• A)Observation terms
• B)Indirect observables
• C)Constructs
• D)Reification concepts
• E)Dimensions

---

Definitions:

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Ratio

An expression of the mathematical relationship between one quantity and another. The relationship may be expressed either as a percentage, a rate, or a simple proportion.

Horizontal Analysis

A financial analysis technique that evaluates changes in financial statement items over a series of accounting periods, showcasing trends and growth patterns.

Times Interest Earned

Measures a company’s ability to meet interest payments as they come due; computed by dividing the sum of net income, interest expense, and income tax expense by interest expense.