Which Accounting Assumption Requires That Only Those Things That Can

question 115

Multiple Choice

Which accounting assumption requires that only those things that can be expressed in dollar values are included in the accounting records?

• A)monetary unit assumption.
• B)historical cost principle.
• C)periodicity assumption.
• D)full disclosure principle.

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Definitions:

Risk Management

The transfer and distribution of risk.

Transfer and Distribution

The process of moving goods from one location to another and allocating them among parties or points of sale.

Antilapse Clause

A provision in a will or estate plan that specifies what happens to a gift if the beneficiary predeceases the donor, often allowing the gift to pass to the beneficiary's heirs.

Incontestability Clause

A part of an insurance contract that precludes an insurance company from challenging statements in an insurance application after a certain period of time.