Using the Criteria of Occam's Razor,a Good Theory Is One

question 14

Multiple Choice

Using the criteria of Occam's razor,a good theory is one that is the __________ explanation for the available data.

• A)most complex
• B)most conventional
• C)most popular
• D)most simple

---

Definitions:

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Sale Of Fixed Assets

The process of selling long-term assets such as property, plant, and equipment for cash or other compensation.

Operating Activities

Business functions related to the core operations of a company, generating the majority of its revenue and expenses.

Accumulated Depreciation

The total amount of an asset's cost that has been expensed since the time it was put into use.