The Continuity (Going-Concern)assumption of Accounting

question 53

Multiple Choice

The continuity (going-concern) assumption of accounting:

• A)enables accountants to ignore the effect of inflation in the accounting records.
• B)holds that the entity will remain in operation long enough to use its existing assets.
• C)maintains that each organization, or section of an organization, stands apart from other organizations and individuals.
• D)ensures that accounting records and statements are based on the most reliable data available.

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Definitions:

Continuous Schedule

A plan or system where operations or activities are carried out without interruption or breaks, often requiring a high level of coordination and resources.

Reinforcement Schedule

A plan or rule that determines how often a desired response will be reinforced in behavior modification.

Desired Behaviour

The specific actions or reactions that an organization or individual aims to elicit from others.

Intermittent Schedule

A type of reinforcement schedule in behavioral psychology where rewards or consequences are applied at irregular intervals to shape behavior.