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:

Constraints

Limitations or restrictions that impede progress or achievement.

Involved Targets

Stakeholders or entities directly affected by a specific action or policy.

Gender-role Stereotype

Preconceived notions or beliefs about the roles and behaviors appropriate for individuals based on their gender.

Expectation

A belief or anticipation regarding the outcome of certain events, actions, or behaviors.