Which of the Following Statements About Inferences and Facts Is

question 87

Multiple Choice

Which of the following statements about inferences and facts is true?

• A) Statements using the words "never" and "always" are less likely to be inferences.
• B) A fact is a conclusion drawn from the inferences available for scrutiny.
• C) When sending a message, a supervisor should avoid statements that phrase inferences as facts.
• D) An inference is a conclusion drawn from observation.

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Definitions:

Fair Value

Fair value is an estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Share Capital

The funds that a company raises by issuing shares of stock, representing ownership in the company.

Retained Earnings

Refers to the portion of net earnings not distributed as dividends to shareholders but retained by the company to be reinvested in its core business or to pay debt.

Business Combination Valuation Reserve

A reserve set up during the accounting for a business merger or acquisition, accounting for differences in asset valuations and liabilities assumed.