A Theory Is Said to Have Heuristic Value If __________

question 233

Multiple Choice

A theory is said to have heuristic value if __________

• A) it stimulates debate and motivates researchers to pursue research related to the theory.
• B) it explains a fairly narrow area of behavior.
• C) it focuses attention on observations that cannot be readily explained in other ways.
• D) it provides solutions for real-world problems.

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Definitions:

Bad Debts Expense

Bad debts expense represents the loss that a company anticipates or realizes due to the inability to collect payments from customers or clients who have failed to fulfill their financial obligations.

Allowance for Doubtful Accounts

An accounting provision that represents the estimated amount of receivables that may not be collected, reducing the net value of accounts receivable.

Uncollectible Accounts

Debts from customers that are considered to be uncollectible and are therefore written off as an expense.

Allowance Method

A technique in accounting to estimate and deduct bad debts from accounts receivable based on historical data and projections.