Which of the Following Assumptions Implies That a Business Can

question 82

Multiple Choice

Which of the following assumptions implies that a business can continue to remain in operation into the foreseeable future?

• A)Historical cost principle
• B)Unit-of-measure assumption
• C)Continuity assumption
• D)Separate-entity assumption

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Definitions:

Specific Performance

A court-ordered mandate in a contract dispute requiring the party who breached the agreement to fulfill the terms as originally agreed upon.

Compensatory Damages

Monetary compensation awarded to a plaintiff to cover actual losses, such as injury or damages, resulting from the defendant’s actions.

Nominal Damages

A small sum awarded by a court when a legal wrong has occurred, but where there was no substantial loss or injury to be compensated.

Reformation

A legal process that amends or corrects the terms of a contract to reflect the true intentions of the parties involved.