The Assumption Which Requires That Only Those Things That Can

question 97

Multiple Choice

The assumption which requires that only those things that can be expressed in money be 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:

Primary Benefit Test

A legal principle used to determine who is primarily benefited by a service or transaction, often applied in labor law and contract disputes.

Common Law Negligence

A legal principle that imposes a duty to act with the care and diligence that a reasonably prudent person would under the same circumstances, where failure to do so results in harm or damage to another.

Restatement (Second) of Torts

The Restatement (Second) of Torts is a legal treatise from the American Law Institute that summarizes the general principles of common law torts in the United States.

Professional Negligence

The failure of a professional to perform their services with the skill and care that should be exercised by competent professionals in the same field, leading to harm.