Facts and Observations That Can Be Objectively Observed and Carefully

question 14

Multiple Choice

Facts and observations that can be objectively observed and carefully measured using the five senses are known as ______.

• A) evidence
• B) key concepts
• C) correlatives
• D) spurious factors

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Definitions:

Land

Land is considered a fixed asset or real property, not depreciable under accounting rules, used by businesses for operations or investment.

Cash Inflow

Money received by a business from various sources including sales, investments, financing, and more.

Indirect Method

A method of preparing a statement of cash flows in which net income is adjusted for items that do not affect cash, to determine net cash provided by operating activities.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.