If You Observe That Event a Happens Before Event B

question 49

Multiple Choice

If you observe that Event A happens before Event B happens, and you conclude that Event A caused Event B, you would be guilty of an error called the

• A) fallacy of composition.
• B) fallacy of inductive reasoning.
• C) fallacy of ceteris paribus.
• D) post hoc, ergo propter hoc fallacy.

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Definitions:

Discontinued Operations

Components of a company that have been sold or terminated, reported separately in financial statements for clarity.

Continuing Operations

Refers to the parts of a business expected to continue operating and generating revenue over the long term, excluding any discontinued operations.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Investing Activities

Cash flow activities that include (a) purchasing and disposing of investments and property, plant, and equipment using cash and (b) lending money and collecting the loans.