Which of the Following Is True

question 31

Multiple Choice

Which of the following is true?

• A) The motivation to try to explain something is at the heart of building a theory.
• B) If a theory makes people uncomfortable then it should be discarded or ignored.
• C) In order for a theory to be valid it must be a perfect description of reality.
• D) Building a theory and evaluating a theory are the same thing.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby resetting the temporary accounts for the new period.

Temporary Accounts

Accounts used to track transactions within a fiscal period that are then reset to zero at the start of the next period, such as revenue and expense accounts.