In His Chemistry Class, Milton Learned the Rules and Features

question 314

Multiple Choice

In his chemistry class, Milton learned the rules and features used for classifying certain chemical compounds. Milton has learned a(n) _____ concept.

• A) formal
• B) natural
• C) informal
• D) unnatural

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Definitions:

Capital Lease

A lease classified as a purchase by the lessee, where the asset is accounted for on the lessee’s balance sheet as an asset.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the interest expense over the life of the bond by applying a constant interest rate to the carrying value of the bond.

GAAP

Stands for Generally Accepted Accounting Principles, which are the standard framework of guidelines for financial accounting in a particular jurisdiction.

Straight-Line Method

A method of depreciation where an asset's cost is evenly reduced over its useful life.