The Accounting Concept That Requires Financial Statement Information to Be

question 263

Multiple Choice

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

• A) Revenue recognition principle.
• B) Time-period assumption.
• C) Objectivity principle.
• D) Going-concern assumption.
• E) Business entity assumption.

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Definitions:

Corporate Pretax Profits

Earnings generated by a corporation before taxes are deducted, often used as a measure of a company's financial performance.

Proprietors' Income

The income earned by the owners of unincorporated businesses from their business activities.

Present Value

The value today of a sum of money or sequence of cash flows expected in the future, discounted by a certain rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.