Which of the Following Is NOT True Concerning Models

question 174

Multiple Choice

Which of the following is NOT true concerning 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:

Balance Sheet Expenditures

Expenses that are reflected in the balance sheet, usually through an adjustment of assets or liabilities.

Commercial Substance

A concept that an economic transaction has a significant impact on the future cash flows of a company, justifying its recognition.

Plant Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operation of a business and not intended for resale.

Exchanges

Transactions where goods, services, or assets are traded between two parties without the primary use of money, also can refer to platforms that facilitate these trades.