"Rules of Thumb" That Are Usually Quick but Which Do

question 308

Multiple Choice

"Rules of thumb" that are usually quick but which do not guarantee a problem solution will be found, are called:

• A)algorithms
• B)homilies
• C)heuristics
• D)axioms

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Definitions:

Entity Assumption

The accounting principle that treats a business as a separate legal and accounting entity, distinct from its owners, managers, or operators.

Historical Cost Principle

An accounting principle that assets should be recorded and reported at their original purchase cost.

Going-Concern Assumption

An accounting principle assuming that a company will continue to operate indefinitely and not go bankrupt, impacting financial decisions and reporting.

Full Disclosure

The principle that requires a company to provide all necessary information in its financial statements to ensure they are complete and accurate.