All of the Following Except One Are True of Economic

question 125

Multiple Choice

All of the following except one are true of economic theories or models. Which one is the exception?

• A) They attempt to establish cause and effect between economic variables.
• B) They always reflect reality.
• C) They are built with assumptions and then tested with facts.
• D) They are generalizations used to give context to our observations.

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Definitions:

Internal Users

Individuals within an organization, such as managers and employees, who use financial information for decision-making.

Accounting Information

Financial data and insights about the operations and financial position of a business, used by stakeholders to make decisions.

Employees

Individuals who work for a business or organization and receive compensation for their labor, either on a salary or hourly basis.

Financial Accounting Standards Board

The authoritative body that has the primary responsibility for developing accounting principles.