Garrison Company Prepares Quarterly Reports, Which It Distributes to All

question 26

Multiple Choice

Garrison Company prepares quarterly reports, which it distributes to all stockholders and other entities that rely on its accounting information. Which of the following is the best term for the key assumption in financial reporting that Garrison is following?

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

---

Definitions:

Benefit

An advantage, gain, or positive outcome derived from a specific action, decision, or product.

Satisfaction

A feeling of fulfillment or contentment that comes from achieving one's goals or meeting one's needs and desires.

Civilian Goods

Products and services intended for use by the general public rather than for military purposes.

Real Cost

The total cost of producing a good or service, including the opportunity cost of alternative uses of resources and inputs.