Which of the Following Would Be Best Described as an "Educated

question 114

Multiple Choice

Which of the following would be best described as an "educated guess"?

• A)Method
• B)Theory
• C)Hypothesis
• D)Design

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Definitions:

Accumulated Depreciation

This accounts for the total depreciation expenses charged against a fixed asset since it was put into use, reflecting the decrease in value of the asset.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period, determining the net income or loss.

Owner's Drawings

Withdrawals made by the owner of a business from the company's funds for personal use.

Owner's Equity Accounts

Accounts reflecting the owner's investment in the business plus any profits retained in the business, minus any withdrawals made.