Why Did the Solar Nebula Flatten into a Disk

question 56

Multiple Choice

Why did the solar nebula flatten into a disk?

• A)The interstellar cloud from which the solar nebula formed was originally somewhat flat.
• B)It flattened as a natural consequence of collisions between particles in the nebula, changing random motions into more orderly ones.
• C)The force of gravity pulled the material downward into a flat disk.
• D)As the nebula cooled, the gas and dust settled onto a disk.

Identify components of the balance sheet (Assets, Liabilities, Owner's Equity).

Analyze transactions to determine their effect on the accounting equation.

Understand the concept of purchasing assets and its impact on the accounting equation.

Distinguish between different methods of asset acquisition (cash vs. credit).

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Definitions:

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged, indicating the effectiveness of a hedge against fluctuations.

Fair Value Hedge

A hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, or some component thereof, that is attributable to a particular risk and could affect profit or loss.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.

Trade Payable

An amount owed by a business to its suppliers shown as a liability on the company's balance sheet.