Which Accounting Assumption Assumes That an Enterprise Will Continue in Operation

question 103

Multiple Choice

Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

• A) Monetary unit assumption.
• B) Economic entity assumption.
• C) Periodicity assumption.
• D) Going concern assumption.

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Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as production increases.

MC Shifts

Changes in the marginal cost curve, which can occur due to variations in factors like input prices, technology, or regulations.

Output Changes

Alterations in the quantity of goods or services produced by a firm, industry, or economy, influenced by factors like technology, input prices, and demand.

Federal Rules

The regulations established by federal authorities that govern legal procedures, evidence, and the administration of justice in federal courts.