The Accounting Principle That Requires Financial Statements to Reflect the Assumption

question 165

Multiple Choice

The accounting principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidenceshows that it will not continue, is the:

• A)Revenue recognition principle.
• B)Cost principle.
• C)Going concern principle.
• D)Monetary unit principle.
• E)Business entity principle.

---

Definitions:

Glistening Appearance

A physical trait where a surface appears shiny or sparkles, often due to being wet or polished.

Effector

A part of the body, such as a muscle or organ, that produces a response when stimulated by a nerve impulse.

Interneuron

Neuron located within the central nervous system that conveys messages between parts of the central nervous system.