As One Attempts to Develop a Model, Which of the Following

question 67

Multiple Choice

As one attempts to develop a model, which of the following problems might she encounter?

• A)The assumptions made in order to apply the model will not be violated.
• B)The model will provide an array of possible answers to the question the analyst poses.
• C)Everyone will understand the problem in the same way.
• D)Accurate data will not be available for the model.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Monetary Unit Assumption

An accounting principle that assumes transactions and events can be expressed in monetary units.

Dollar Amounts

Units of currency used in financial transactions or accounting to represent values or costs.

Fair Value

The value that could be gained from the sale of an asset or the expense of transferring a liability, in a regulated transaction among market players on the date of assessment.