Which of the Following Principles or Assumptions Requires That the Activities

question 66

Multiple Choice

Which of the following principles or assumptions requires that the activities of a business be kept distinct from those of its owner(s) ?

• A) economic entity concept
• B) going concern assumption
• C) monetary unit assumption
• D) cost principle

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Definitions:

Obsolete

Refers to something that is out-of-date or no longer in use, typically because it has been superseded by newer, more efficient alternatives.

Misrepresented Solvency

The incorrect presentation or falsification of a company's financial stability or ability to meet its debts.

10-day limitation

A time constraint within which certain actions must be taken or rights may be lost.

Incidental Damages

Minor costs or expenses that arise indirectly from a breach of contract.