The State Legislature Is Currently Debating a Bill That, If

question 86

Multiple Choice

The state legislature is currently debating a bill that, if passed, would require the Sandiken Company to go out of business.Which of the following principles or assumptions related to the preparation of Sandiken's financial statements is most directly affected by this impending vote of the legislature?

• A)going concern
• B)verifiability principle
• C)entity concept
• D)materiality concept

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