A Base Element Is One That

question 33

Multiple Choice

A base element is one that:

• A) was initially keyed into the system.
• B) does not change over a period of time.
• C) is used within one and only one subsystem.
• D) is the result of a calculation or some other logic.

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Definitions:

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing total taxes paid by the taxable income.

Cost Method

An accounting approach where investments are recorded at their original purchase cost, without adjustment for changes in market value.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Equity Method

A method of accounting in which an investor recognizes its share of the profits and losses of an investee that it influences but does not control.