The Ability to Maintain Its Fundamental Nature Even Though Changes

question 4

Multiple Choice

The ability to maintain its fundamental nature even though changes are made by input describes which characteristic of a system?

• A) reciprocity
• B) non-summativity
• C) homeostasis
• D) differentiation

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Definitions:

Contingent Liability

A contingent liability is a potential financial obligation that may arise depending on the outcome of an uncertain future event.

Accrual

A bookkeeping approach that logs income and expenditures at the time they occur, irrespective of the timing of actual cash transactions.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, presenting the financial results and health of the entity.

Onerous Contract

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.