Which of the Following Statements Is True of Indirect Methods

question 48

Multiple Choice

Which of the following statements is true of indirect methods of proof?

• A) The cash method, which has limited application, is feasible only when the number of units and price can be determined easily.
• B) When there is an accumulation of assets without a corresponding source of funds the unit and volume method is most commonly used.
• C) The bank deposit method is used when the subject (individual or business) consumes income rather than accumulates assets.
• D) Successful use of the net worth method requires a complete reconstruction of the subject's financial history, including all assets, liabilities, expenditures, and sources of funds.

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Definitions:

Plug Filters

Devices used to remove particulate contaminants from fluids or gas streams, often installed in-line with other machinery or systems.

Differential Carrier Housing

The casing that encloses the differential assembly in a vehicle, providing protection and support for the differential gears.

Lube Level

A measure indicating the amount of lubricant within a particular system or component, ensuring optimal operation and protection against wear and tear.