Which of the Following Basic Assumptions of Accounting (Used by the International

question 77

Multiple Choice

Which of the following basic assumptions of accounting (used by the International Accounting Standards Board) makes depreciation and amortization policies justifiable and appropriate?

• A) Periodicity.
• B) Decision usefulness
• C) Monetary unit.
• D) Going concern.

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Definitions:

Mutual Service

A collaborative arrangement where organizations or individuals provide services to each other for mutual benefit, often without monetary exchange.

Reciprocal Approach

A method used in managerial accounting to allocate costs among departments or units when there are mutual services provided between them.

Support Department Costs

Costs incurred by departments that do not directly produce goods or services but provide support to other departments that do.

Large Support Departments

Essential organizational units that provide services and support to the core functions of a business but do not directly contribute to profit generation.