Which One of the Following Is an Assumption Made in the Preparation

question 180

Multiple Choice

Which one of the following is an assumption made in the preparation of financial statements?

• A)Financial statements are prepared for a specific entity that is distinct from the entity owners.
• B)Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit
• C)Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time.
• D)Market values are always assumed to be irrelevant when preparing financial statements.

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Definitions:

Dikaryotic

Condition of having two nuclei per cell (i.e., n + n), characteristic of certain fungal hyphae. Compare with monokaryotic.

Polykaryotic

A cellular condition in which an organism has multiple nuclei within a single cell membrane.

Yeast

A unicellular fungus (usually an ascomycete) that reproduces asexually by budding or fission, and sexually by ascospores.

Perforated Septum

A condition where the nasal septum, the bone and cartilage that separates the nasal cavity, has one or more holes.