(Last Word) Which of the Following Has to Do with the Problem

question 247

Multiple Choice

(Last Word) Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning?

• A)the law of large numbers
• B)the law of averages
• C)the post hoc, ergo propter hoc fallacy
• D)the fallacy of composition

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Definitions:

Straight-line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life for accounting and tax purposes.

Unamortized Premium

The portion of the premium paid over the par value of bonds that has not yet been amortized or written off over the life of the bond.

Bonds Payable

A liability account that records the amounts a company owes to bondholders by the bond's maturity date.

Carrying Amount

The value of an asset or liability according to a company's balance sheet, factoring in depreciation or amortization.