Hypotheses That Are Generated Starting with General Ideas and Testing

question 22

Multiple Choice

Hypotheses that are generated starting with general ideas and testing whether these work on specific examples are called:

• A) Inductive Reasoning
• B) Deductive Reasoning
• C) Comparative checking
• D) Analyzing Deviant Cases

---

Definitions:

Trading Securities

Marketable securities held by a firm with the intent of short-term trading for profit, which are classified as current assets on the balance sheet.

Accounting Principles

The foundational concepts and guidelines that govern the field of accounting, such as revenue recognition, matching principle, and full disclosure.

Extraordinary Item

Events or transactions that are both unusual in nature and infrequent in occurrence, impacting a company's financial position.

Selling Activities

Actions undertaken by a company to promote and sell its products or services, including advertising, sales promotions, and personal sales.