An Accountant May Amortize the Expense of a Durable Good

question 25

True/False

An accountant may amortize the expense of a durable good by dividing the total amount spent on the good by the number of years the good is expected to last.An economist may amortize the expense of a durable and never fully account for the total expense.

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Definitions:

External Validity

The extent to which the findings from a study can be generalized to other people, other settings, and other time periods.

Placebo

An inactive substance or treatment given to a participant in a study, used to test the efficacy of a therapy or medication.

Accomplices

Individuals who actively assist, facilitate, or encourage another person in the commission of a crime, without necessarily taking part in the actual criminal act.

Perceptual Judgments

The process of interpreting sensory information to make meaningful assessments about one's environment.