Which of the Following Concepts (Or Principles)require an Assumption That

question 11

Multiple Choice

Which of the following concepts (or principles) require an assumption that the entity will remain in operation for the foreseeable future?

• A)Cost principle
• B)Going- concern concept
• C)Profit recognition principle
• D)Entity concept

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Definitions:

Legal Action

A formal process in which a legal proceeding is initiated to enforce a particular right, seek a remedy for a breach, or obtain a legal ruling.

Severe Inflation

A rapid and unchecked increase in prices within an economy, significantly eroding purchasing power.

Biscuit Packs

Typically refers to packages containing biscuits, prepared for retail sale.

Supply Contract

An agreement between a supplier and buyer for the provision of goods or services over a specified period.