Classification of Assets on the Company's Balance Sheet into Current

question 1

Multiple Choice

Classification of assets on the company's balance sheet into current and long-term illustrates which assumption?

• A) going concern concept
• B) economic entity concept
• C) monetary unit assumption
• D) historical cost assumption

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Definitions:

Opportunity Cost

Overlooking potential gains available from different alternatives by settling on one choice.

Muffin

A small, baked good often sweetened and sometimes containing fruits, nuts, or chocolate, typically enjoyed as a snack or quick breakfast.

Absolute Advantage

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Radios

Electronic devices for receiving radio waves and converting them into sound or other signals.