Which One of the Following Assumptions or Principles Most Logically

question 45

Multiple Choice

Which one of the following assumptions or principles most logically supports the preparation of a single set of consolidated financial statements that combines the financial information of several wholly owned but separately identifiable businesses?

• A)historical cost
• B)industry practices
• C)entity
• D)materiality

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Definitions:

Low-Wage Jobs

Positions that offer compensation at the lower end of the pay scale, often not sufficient to meet the basic living expenses of the worker.

Free Black Workers

Denotes African American individuals who were not enslaved and worked for wages or owned their businesses, notably before and after the Civil War in the United States.

Fugitive Slave Act

Legislation passed in 1850 that required the return of escaped slaves to their owners and imposed penalties on anyone who aided in their flight, intensifying antislavery sentiments.

Escaped Slaves

Individuals who fled from slavery to seek freedom, often traveling long distances and facing significant dangers.