In Accounting for Tangible Operational Assets, the Continuity Assumption Is

question 32

Multiple Choice

In accounting for tangible operational assets, the continuity assumption is important because of which of the following?

• A) It is consistent with maintaining assets in the accounting records at market value rather than acquisition cost.
• B) It provides justification for including residual values in calculating depreciation.
• C) It helps a company decide whether to use straight-line depreciation or an accelerated depreciation method.
• D) It justifies depreciating the asset over its expected useful life, without anticipating that the business will liquidate in the near future.

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