The Accounting Assumption That the Financial Statements of a Business

question 53

Multiple Choice

The accounting assumption that the financial statements of a business reflect the activities of the business and not the activities of the owners is the:

• A)matching assumption.
• B)periodicity of income assumption.
• C)separate economic entity assumption.
• D)monetary unit assumption.

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Definitions:

Legislative History

A record of the documents, hearings, and discussions involved in the creation and passing of a law or statute.

Financial Discipline

The practice of managing one's personal or organizational finances responsibly, following a plan to achieve specific financial goals.

Chapter 13

A type of bankruptcy in the U.S. that allows individuals with a regular income to develop a plan to repay all or part of their debts.

Order For Relief

A court order in a bankruptcy case that allows the commencement of bankruptcy proceedings and the administration of the debtor's estate by a trustee.