Tentative Explanations or Predictions That Can Be Scientifically Tested Are

question 39

Multiple Choice

Tentative explanations or predictions that can be scientifically tested are called

• A) theories.
• B) hypotheses.
• C) research findings.
• D) conclusions.

Understand how changes in variable costs and fixed costs affect operating income.

Calculate the margin of safety and its significance in risk assessment.

Realize the applications and limitations of cost-volume-profit (CVP) analysis.

Understand the use of sensitivity analysis in assessing different business scenarios.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services delivered on credit.

Current Liabilities

Financial obligations or debts a company is expected to pay within a year.

Inventory

A complete list of items, such as goods in stock, held by a business to fulfill customer demand.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.