Solutions to Which of the Following Categories of Modeling Techniques

question 32

Multiple Choice

Solutions to which of the following categories of modeling techniques indicate a course of action to the decision maker?

• A) Descriptive models
• B) Predictive models
• C) Prescriptive models
• D) Preventive models

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Definitions:

Financial Statement Disclosures

Refers to the requirement for organizations to provide additional context, data, and explanations within their financial statements, helping stakeholders understand the financial health and decisions of the entity.

Equity Method

An accounting technique used by firms to account for their investments in other companies when they hold significant influence but not full control.

Swaps

Financial derivatives where two parties exchange financial instruments or cash flows for a set period according to specified terms.

Economic Benefit

The gain received by an entity as a result of an action taken or a decision made, which contributes to the entity's wealth.