Which of the Following Is True of the Last Step

question 8

Multiple Choice

Which of the following is true of the last step of the scientific process?

• A) It requires the use of inductive and deductive reasoning to arrive at conclusions.
• B) It involves an objective evaluation of all evidence collected in a case followed by an estimation of the probability that the hypothesis is valid.
• C) It involves use of techniques such as financial statements analysis.
• D) It requires the forensic accountant to form a working hypothesis.

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Definitions:

Return On Investment

A measure of the profitability and efficiency of an investment, calculated as net profit divided by the cost of the investment.

Invested Assets

Assets that have been purchased or acquired for the purpose of generating income or profit, not for immediate resale.

Minimum Return

The lowest acceptable rate of return on an investment that a manager or investor is willing to accept.

Residual Income

Residual income is the amount of net income generated in excess of the minimum rate of return. It's often used to assess the performance of business units.