The Framework Outlines Two Underlying Assumptions of Financial Statements

question 38

Multiple Choice

The Framework outlines two underlying assumptions of financial statements.These arE.

• A)fair value basis and insolvency assumption.
• B)accrual basis of accounting and going concern assumption.
• C)cash basis of accounting and insolvency assumption.
• D)historical cost accounting and limited life concept.
• E)fair value basis of measurement and perpetual life concept.

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Definitions:

Nathaniel Greene

A major general of the Continental Army in the American Revolutionary War, known for his successful military campaigns in the Southern theater.

Valley Forge

A historical site in Pennsylvania where the American Continental Army spent the winter of 1777-1778 during the American Revolutionary War, facing severe hardships.

American Soldiers

Members of the United States Armed Forces, serving in various branches including the Army, Navy, Air Force, Marine Corps, and Coast Guard.

Lack of Food

A situation where there is an insufficient supply of food to meet the nutritional needs of a population.