During the Lifetime of an Entity, Accountants Produce Financial Statements

question 104

Multiple Choice

During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept?

• A) Cost constraint
• B) Periodicity assumption
• C) Conservation
• D) Expense recognition principle

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Definitions:

Absolute Value

The distance of a number on the number line from zero, without considering which direction from zero the number lies.

Vertical Line Test

A method used to determine if a graph represents a function by checking if any vertical line crosses the graph more than once.

Function

A relationship between two sets that associates every element of the first set with exactly one element of the second set.

Vertical Line Test

A method used in determining if a graph represents a function, stating that if a vertical line intersects the graph more than once, then the graph is not a function.