Which Accounting Assumption or Principle Is Being Violated If a Company

question 6

Multiple Choice

Which accounting assumption or principle is being violated if a company provides financial reports only when it introduces a new product?

• A) Economic entity.
• B) Periodicity.
• C) Revenue recognition.
• D) Full disclosure.

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Definitions:

Writing

A method of recording language through the inscription or recording of signs and symbols.

Lease

A transfer of the right to possession and use of goods for a term in return for consideration.

Possession and Use

The right to hold property and utilize it, which can be exclusive to the owner or shared with others.

Goods

Tangible items that are manufactured or produced for sale.