Which of the Following Statements About Models Is Correct

question 201

Multiple Choice

Which of the following statements about models is correct?

• A)The more details a model includes,the better the model.
• B)Models assume away irrelevant details.
• C)Models cannot be used to explain how the economy functions.
• D)Models cannot be used to make predictions.

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Definitions:

Workweek

A fixed, recurring period used to measure a worker's or business's hours worked, often consisting of five to seven consecutive days.

Accounting Period

A specific time frame in which financial transactions are recorded and financial statements are prepared, typically a year or a quarter.

Prepayment

Payments made in advance for goods or services, recorded as an asset until the corresponding goods or services are received.

Adjusting Entry

An accounting record made to update the book value of an asset or to correct or allocate income and expenses to the appropriate period.