The Business Entity Assumption Means That Accounting Information Reflects a Presumption

question 166

True/False

The business entity assumption means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

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Definitions:

External Consequences

Outcomes or reactions stemming from an individual's actions that occur outside of the individual, affecting their environment or other people.

Skinner

B.F. Skinner, an American psychologist and behaviorist, known for his work in the development of the theory of operant conditioning.

Cognitive Psychologists

Cognitive psychologists study mental processes including perception, thinking, memory, and judgment, focusing on how people understand, diagnose, and solve problems.

Decision Making

The method of selecting options through recognizing a decision to be made, collecting data, and evaluating different solutions.