A Principle That Is So General That It Is Assumed

question 43

Multiple Choice

A principle that is so general that it is assumed to apply to all situations is called a

• A) theory.
• B) law.
• C) research hypothesis.
• D) tautology.

---

Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating capital structure.

Financing Activities

Transactions between a business and its sources of funding, including equity and debt, reflected in the cash flow statement.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Common Stock

Shares that constitute ownership in a corporation, providing voting rights and entitling shareholders to a portion of the company’s profits through dividends.