Assumptions in Models Tend to Make

question 123

Multiple Choice

Assumptions in models tend to make

• A) the model predict what the scientist wants the results to be.
• B) the model more realistic.
• C) the model more applicable to specific circumstances.
• D) the model always predict the future accurately.

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Definitions:

Permanent/Temporary

In accounting, refers to the classification of accounts based on their longevity; permanent accounts are cumulative over time (e.g., assets, liabilities, equity), while temporary accounts are closed at the end of each accounting period (e.g., revenues, expenses).

Normal Balance

The side (debit or credit) on which increases to the account are recorded, based on the type of account (asset, liability, equity, revenue, expense).

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Permanent/Temporary

Classification of accounts where permanent accounts are balance sheet items carrying over to the next financial period, while temporary accounts are income statement items closed at the end of the period.