If You Concluded from the Fact That the Last Three

question 81

Multiple Choice

If you concluded from the fact that the last three recessions have occurred while Republicans were President that their fiscal policies create recessions then you would be

• A)right.
• B)wrong because causation and correlation are not the same.
• C)wrong and have fallen victim to the fallacy of composition.
• D)wrong because Democrats are much worse.

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Definitions:

Useful Lives

The estimated period during which an asset is expected to be usable for the purpose for which it was acquired.

Revaluation Surplus

An increase in the carrying amount of an asset to its fair value, exceeding its previously recorded nominal value, recognized directly in equity.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the owner's claim against the company's assets.