When Preparing Financial Statements, the Accountant Assumes That the Business

question 32

True/False

When preparing financial statements, the accountant assumes that the business will stay in business for the foreseeable future.

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Definitions:

Private Saving

Private saving is the portion of households' and businesses' income that is not spent on consumption or paying taxes, and is instead saved for future use.

National Saving

The total saving of an economy, consisting of both private saving (by households and businesses) and public saving (government surplus).

Private Saving

The portion of households' income that is not used for consumption or paying taxes, but instead is saved.

National Saving

The total amount of savings generated within a country, calculated as the sum of private savings (by individuals and businesses) and public savings (government surplus), which is critical for funding investment.