Match the Descriptions Listed in Letters a Through E Below

question 21

Essay

Match the descriptions listed in letters a through e below with the proper assumption numbered from 1 through 4 below.
Descriptions
a. The economic life of an entity can be divided into time periods.
b. The financial statements should contain transactions related to only the business and not the individual owners.
c. Purchasing power of money is constant over time.
d. The dollar value attached to an item on a company's balance sheet is determined by the market in which the company operates.
e. Life of the entity is indefinite.
____ 1. Economic entity assumption
____ 2. Stable dollar assumption
____ 3. Going concern assumption
____ 4. Fiscal period assumption

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Definitions:

Educational Costs

Expenses associated with acquiring education, including tuition, books, supplies, and living expenses.

Market Signaling Device

Methods or activities used by firms or individuals to convey information about the quality or features of a product or service to the market.

Worker Ability

The skills, talent, or capacity that an employee possesses, which can determine their effectiveness in performing job tasks.

Time Management

The process of organizing and planning how to divide one's time between various activities to increase effectiveness, efficiency, or productivity.