When Preparing the Financial Statements, We Assume That the Life

question 94

Multiple Choice

When preparing the financial statements, we assume that the life of the entity will continue beyond the current period. Which assumption are we most likely following?

• A)Stable dollar theory.
• B)Going concern assumption.
• C)Economic entity assumption.
• D)Fiscal period assumption.

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Definitions:

GST Returns

The periodic filing with the taxation authority detailing sales, the GST collected on sales, and the GST paid on purchases.

Correct To The Cent

Adjusting a monetary amount to ensure accuracy up to the smallest currency unit, often referring to rounding to the nearest cent.

Rate Of Return

The increase or decrease in the value of an investment within a defined timeframe, represented as a percent of the investment's initial price.

Portfolio

A diversified collection of investments held by an individual or institution, which may include stocks, bonds, and other assets.