A Theory Is

question 33

Multiple Choice

A theory is

• A) an educated guess based on data collected.
• B) a statement that describes how a system will behave.
• C) a precise mathematical equation.
• D) based on many observations and experiments or tests.
• E) a proven hypothesis.

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Definitions:

Salvage Value

An asset's anticipated value at the end of its operational life, as estimated.

Straight Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Average Accounting Rate of Return

A method to estimate the profitability of investments, calculated by dividing the average annual profit by the initial investment cost.

Straight-Line Depreciation

A scheme for dividing the expenditure of a solid asset over its life span in equal yearly quotas.