Which of the Following Is NOT True Regarding Theories

question 3

Multiple Choice

Which of the following is NOT true regarding theories?

• A)They provide guidelines and principles.
• B)They are abstractions that are best left for researchers and not applicable to practitioners.
• C)They provide principles and predictions.
• D)Successful people in business pay attention to them.

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Definitions:

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Estimable

Capable of being reasonably estimated or calculated, often used in the context of accounting to refer to expenses or losses.

Reasonably Possible

A term used in accounting and law to describe an outcome that, while not certain, is more than a mere possibility and should be considered or disclosed.

Merchandise Inventory

Goods that are purchased for the purpose of being sold to customers in the normal course of business.