Educated Guesses About the Relationships Between Things or About What

question 30

Multiple Choice

Educated guesses about the relationships between things or about what will happen in the future are:

• A) hypotheses.
• B) laws.
• C) proposals.
• D) theories.
• E) predictions.

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Definitions:

Revaluation Surplus

An increase in the carrying amount of an asset to its fair value, exceeding its previously recorded nominal value, recognized directly in equity.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the owner's claim against the company's assets.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjustments are only made for impairments or additional investments, without recognizing unrealized gains or losses.