Which Accounting Assumption Assumes That an Enterprise Will Continue in Operation

question 137

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:

Family Income

The combined total income earned by all members of a family, contributing to the household's total wealth.

Inflationary Condition

An economic situation characterized by an increase in prices and a decrease in the purchasing value of money.

Gross Income

The total income earned by an individual or organization before any deductions, such as taxes or expenses, are applied.

U.S. Census Bureau

A key institution in the U.S. Federal Statistical System that creates statistical data on the American population and economic activities.