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:

Culture

The set of social behaviors, practices, beliefs, and norms that characterize a group or society, passed down from generation to generation.

Emotions

Complex psychological states that involve a subjective experience, physiological response, and a behavioral or expressive response.

Cognition

The cognitive process of gaining knowledge and comprehension via reflection, experience, and sensory perception.

Schachter and Singer's Theory

A psychological theory suggesting that emotions are determined by physiological arousal and the cognitive interpretation of that arousal, emphasizing the role of environmental cues in identifying the type of emotion experienced.