The Accounting Principle That Requires Financial Statements to Be Prepared

question 96

Multiple Choice

The accounting principle that requires financial statements to be prepared on the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the

• A) historical cost principle
• B) business entity principle
• C) going concern principle.
• D) currency principle
• E) revenue recognition principle

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Definitions:

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts and feelings are unconsciously pushed out of conscious awareness.

Unpleasant Thoughts

Intrusive ideas or imaginations that are often distressing or disturbing to the individual experiencing them.

Consciousness

The state of being aware of and able to think about oneself, one's surroundings, and one's thoughts and feelings.

Psychosexual Energy

In Freudian psychoanalysis, refers to the driving force behind human behavior related to sexual desire and personality development.