Which Basic Assumption Is Illustrated When a Firm Reports Financial

question 24

Multiple Choice

Which basic assumption is illustrated when a firm reports financial results on an annual basis?

• A) Economic entity assumption.
• B) Going concern assumption.
• C) Periodicity assumption.
• D) Monetary unit assumption.

---

Definitions:

Region Of Optimality

The set of all solutions that optimizes a given objective function within a feasible region.

Iso-Profit Line

A graphical representation in managerial economics that shows combinations of different products or inputs that yield the same level of profit.

Feasible Region

The set of all feasible combinations of decision variables.

Optimum

The most favorable condition or degree of something that achieves the best possible outcome or efficiency.