The Principle That Irrelevant Detail Should Not Be Included in a Model

question 51

Multiple Choice

The principle that irrelevant detail should not be included in a model is known as

• A) a fallacy.
• B) ceteris paribus.
• C) Ockham's razor.
• D) normative economics.

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Definitions:

Selling Receivables

The process of selling a company's accounts receivable to a third party to improve liquidity and reduce the risk of uncollectible debts.

Voucher System

A control mechanism in accounting that requires all company expenditures to be documented with vouchers, supporting the authenticity of transactions.

Accounts Receivable

Outstanding receivables from clients to a business for supplied products or executed services awaiting payment.

Internal Control

Internal Control encompasses the policies, procedures, and actions implemented by a company to ensure the integrity of financial reporting, compliance with laws and regulations, and effective and efficient operations.