Which of the Following Is NOT True About the Term

question 21

Multiple Choice

Which of the following is NOT true about the term concept?

• A) Many concepts are used in everyday discourse without consistent definition.
• B) Definitions of concepts can be the object of intense debate.
• C) The meanings of concepts may change over time.
• D) They always have a correct way of being defined.

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Definitions:

Normal Credit

In accounting, it refers to the balance side (either credit or debit) that is expected for a particular type of account; for liability accounts, equity accounts, and revenue accounts, it is typically a credit balance.

Asset

Resources owned or controlled by a company expected to provide future economic benefits.

Liability

A financial obligation or debt that a company is required to repay to another entity in the future.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financial activities over a period.