Which of the Following Is an Assumption Made in the Preparation

question 131

Multiple Choice

Which of the following is an assumption made in the preparation of the financial statements?

• A)Financial statements are prepared for a specific entity that is distinct from the entity's owners.
• B)The current market value is assumed to be more relevant than the original cost paid.
• C)The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time.
• D)Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit.

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Definitions:

Intelligent

Having or showing the ability to easily learn or understand things or to deal with new or difficult situations.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in a workplace or other professional or social situation.

Slang

Informal language consisting of words and expressions that are not considered standard in the speaker's dialect or language.

Western Cultures

Societies primarily found in Europe and North America characterized by values such as individualism, democracy, and market economies.