An Economic Hypothesis

question 275

Multiple Choice

An economic hypothesis

• A) has the same meaning as an economic principle or economic law.
• B) is usually a normative statement.
• C) is a possible explanation of cause and effect.
• D) is a stronger generalization than an economic law.

Know how to perform a valve lash adjustment and its significance in engine performance.

Interpret the results of engine diagnostic tests to determine the engine’s condition.

Understand the nature and characteristics of services including intangibility, inseparability, heterogeneity, perishability.

Identify and explain the differences between goods and services.

---

Definitions:

Long-Lived Assets

Long-lived assets are tangible or intangible assets that a company holds for use over several years, such as buildings, machinery, or patents.

Prepayment

Payment made for goods or services before they have been received or provided, often resulting in a current asset on the balance sheet.

Deferred Rent

An accounting practice where rent expenses are not immediately recognized but instead allocated over future periods to match usage with expense.

Financial Statements

Papers that give a summary of a company's financial status, featuring the balance sheet, income statement, and statement of cash flows.