The Basic Assumptions of Accounting Used by the International Accounting

question 31

Multiple Choice

The basic assumptions of accounting used by the International Accounting Standards Board (IASB) include all of the following except:

• A) Going concern.
• B) Periodicity.
• C) Accrual basis.
• D) Materiality.

---

Definitions:

Service Revenues

Income earned from providing services as opposed to selling physical goods.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.

Common Shares

Shares in a company that signify ownership, allowing those who hold them to participate in voting and receive a part of the profits.

Financial Position

A snapshot of the resources, obligations, and ownership equity of an entity at a specific point in time.