A Proposed Explanation for Observed Events Is Called A

question 141

Multiple Choice

A proposed explanation for observed events is called a:

• A) theory.
• B) hypothesis.
• C) idea.
• D) definition.

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Definitions:

Capital Lease

A capital lease is a lease agreement that is structured so that the lessee effectively becomes the owner of the asset for accounting purposes, usually for long-term assets.

Lease Liability

An obligation representing the present value of future lease payments a lessee is committed to make under a lease agreement.

Cost of Capital

The rate of return that a firm must earn on its project investments to maintain its market value and attract funds.