A Theory

question 158

Multiple Choice

A theory:

• A)is a collection of evidence.
• B)organizes evidence collected in the past, but does not help in making predictions about the future.
• C)is a specific statement about an expected relationship among two variables.
• D)provides a framework for collecting and interpreting evidence.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Stock Split

An increase in a firm’s shares outstanding without any change in owner’s equity.

Retained Earnings

Profit that is not distributed to the shareholders but is kept by the company for future investment or to pay off debt.