Which Accounting Assumption Assumes That an Enterprise Will Continue in Operation

question 103

Multiple Choice

Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

• A) Monetary unit assumption.
• B) Economic entity assumption.
• C) Periodicity assumption.
• D) Going concern assumption.

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Definitions:

Beneficial

Producing good or helpful results; advantageous.

Role Conflict

A situation where an individual faces incompatible demands or expectations from different roles they are required to fulfill.

Role Ambiguity

Uncertainty or lack of clarity about expectations, responsibilities, and objectives associated with one's role within an organization or group.

Major Sources

The primary origins or suppliers of information, goods, or energy.