Which of the Following Is NOT a Characteristic of Economic

question 198

Multiple Choice

Which of the following is NOT a characteristic of economic models?

• A)Models simplify reality.
• B)Models can explain how the economy is organized.
• C)Models assume away irrelevant details.
• D)Models cannot be used to make predictions.

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Definitions:

Chart of Accounts

A systematic listing of all accounts used by an organization, categorized to facilitate financial reporting and bookkeeping.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the U.S.

Income Statement Accounts

The accounts that report the revenues, expenses, gains, and losses of a company, which are used to calculate the net income on the income statement.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for accuracy.