Variables That Are NOT Accounted for in a Model Are

question 57

Multiple Choice

Variables that are NOT accounted for in a model are called

• A) endogenous factors.
• B) exogenous factors.
• C) normative statements.
• D) positive statements.
• E) the scientific method.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders in a company.

Balance Sheet

A financial statement that presents a company’s financial position, showing assets, liabilities, and equity at a specific point in time.

Bookkeeper

A person responsible for recording the financial transactions and maintaining the financial records of a business.

Basic Accounting Equation

An equation representing the relationship between a company's assets, liabilities, and shareholders' equity (Assets = Liabilities + Equity).