Which of the Following Is Not a Basic Assumption Underlying

question 35

Multiple Choice

Which of the following is not a basic assumption underlying the financial accounting structure?

• A) Economic entity assumption.
• B) Going concern assumption.
• C) Periodicity assumption.
• D) Historical cost assumption.

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Definitions:

Total Revenue

The total income received by a firm from selling its products; calculated by multiplying the price per unit by the number of units sold.

Market Price

The current price at which an asset or service can be bought or sold in a particular market, determined by the supply and demand for it.

Average Revenue

The average amount of money received per unit of product or service sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product or service.