The Two Main Accounting Assumptions That Underpin the Accrual Approach

question 24

Multiple Choice

The two main accounting assumptions that underpin the accrual approach to profit measurement are:

• A) going concern and accounting period.
• B) historical cost and accounting period.
• C) entity and accounting period.
• D) going concern and historical cost.

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Definitions:

Synthetic Steroid Testosterone

A man-made version of the naturally occurring male hormone testosterone, used in medical treatments and sometimes illicitly to enhance athletic performance.

Testes

The male reproductive organs that produce sperm and hormones, including testosterone.

Interstitial Cells

Interstitial cells, found in various organs, often play a role in the production of hormones, such as testosterone in the testes.

Testosterone

A steroid hormone primarily secreted in males by the testes and is responsible for the development of male secondary sexual characteristics.