Which Accounting Assumption or Principle Is Being Violated If a Company

question 121

Multiple Choice

Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company's share price?

• A) Full disclosure.
• B) Going concern.
• C) Historical cost.
• D) Expense recognition.

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Definitions:

Work Shifts

Work shifts refer to the scheduled periods during which employees are required to perform their job duties, varying across day, evening, or night hours.

Muscle Coordination

The harmonious functioning of muscle groups to produce movements that are fluid and accurately controlled.

Days

Units of time equal to 24 hours, representing the time it takes for Earth to complete one full rotation on its axis.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, reduced sensory activity, and inhibited voluntary muscle activity.