Which of the Following Basic Accounting Assumptions Is Threatened by the Existence

question 99

Multiple Choice

Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?

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

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Definitions:

Oral Contract

A contract wherein terms are agreed upon through spoken communication, which can be legally binding if it meets certain criteria, despite the lack of physical documentation.

Prove

To establish the truth or validity of something through evidence or argument.

Parol Evidence

Oral or verbal evidence that is not included in the written contract, often discussed in the context of disputes about what the parties agreed upon.

Written Contract

A legally binding agreement that has been formulated in writing and signed by the parties involved.