The Scientific Approach to Economic Inquiry Involves

question 108

Multiple Choice

The scientific approach to economic inquiry involves

• A)choosing data that will support the predictions.
• B)using only endogenous variables in economic models.
• C)testing the predictions with empirical data.
• D)testing the reality of the assumptions of the model.
• E)using only independent variables.

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Definitions:

Accounting Cycle

Refers to the series of steps followed in the accounting process to collect, process, and report financial information, culminating in closing the books at the end of the accounting period.

Post-closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, showing account balances ready for the next period.

Notes Payable

Written promises to pay a specific sum of money on a certain date or dates, classified as a liability on the balance sheet.

Service Revenue

Income earned by a company for services rendered to clients or customers.