The Ragun Cajun Bar and Grill,Inc

question 153

Multiple Choice

The Ragun Cajun Bar and Grill,Inc.has been a popular restaurant in Beaumont,Texas.With no insurance,a recent hurricane has left the business with large losses due to a damaged building and lost business income.Which of the following concepts or principles of accounting will be of the greatest concern to Ragun Cajun's auditors?

• A) Going-concern concept
• B) Faithful representation principle
• C) Entity concept
• D) Stable monetary unit concept

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Definitions:

General Partner

An owner of a partnership who is responsible for its operations and is liable for its debts without limitation.

Shareholder

An individual or organization that owns at least one share of a company's stock, making them a part owner of that company.

Unincorporated

Refers to a business or organization that hasn't been legally established as a corporate entity, and thus, its owners bear personal liability for its debts and actions.

Net Profits

The amount of money left after all operating expenses, taxes, interest, and preferred stock dividends have been deducted from total revenue.