The Idea That Businesses Must Be Accounted for as Though

question 82

Multiple Choice

The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the

• A) Going concern concept
• B) Entity concept
• C) Monetary measurement concept
• D) Arm's-length transaction assumption

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Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Long Run

A period in economics where all factors of production and costs are variable, allowing companies to adjust to achieve the most efficient scale of operation.