Which Accounting Assumption or Principle Is Being Violated If a Company

question 87

Multiple Choice

Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company's stock price?

• A)Full disclosure.
• B)Going concern.
• C)Historical cost.
• D)Matching.

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Definitions:

Implications

The possible effects, consequences, or outcomes that may result from a particular action or set of conditions.

Organizational Plans

Strategic outlines crafted by businesses or institutions to achieve long-term goals, detailing the courses of action needed.

Competitors

Entities, individuals, or organizations that are in rivalry for the same objectives, such as market share or recognition.

Problem

An issue or situation that presents difficulty and requires a solution.