The Assumption That Requires Only Those Things That Can Be

question 128

Multiple Choice

The assumption that requires only those things that can be expressed in money are included in the accounting records is the

• A) economic entity assumption.
• B) monetary unit assumption.
• C) going concern assumption.
• D) periodicity assumption.

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Definitions:

Budgeted

The process of creating a financial plan for the anticipated revenues and expenses for a future period.

Zero-Based Budgeting

A budgeting method where all expenses for each new period are justified, starting from a "zero base," regardless of whether each budget is higher or lower than the previous one.

Budgeted Expenditures

Estimated spending for a given period as planned in a budget, often categorized by departments or projects.

Financial Components

The various elements that make up the financial structure of a company, including assets, liabilities, revenues, and expenses.