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:

Composition

In mathematics, the composition of functions refers to the application of one function to the results of another.

Function

A relation or correspondence between two sets in which each element of the first set is paired with exactly one element of the second set, typically described by f(x).

Function

A relation between a set of inputs and allowable outputs, where each input is related to exactly one output.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.