Gunnie Inc

question 45

Multiple Choice

Gunnie Inc., located in Texas, records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the following accounting assumptions does this represent?

• A)economic entity assumption
• B)going concern assumption
• C)accounting period assumption
• D)monetary unit assumption

Understand how revenue recognition and inventory procedures affect interim financial reporting.

Assess the impact of geographic segment reporting within U.S. GAAP framework.

Distinguish between required and non-required disclosures in interim financial reports under U.S. GAAP.

Evaluate the handling of unusual items and changes in accounting principles in interim financial statements.

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Definitions:

Tradable Pollution Permits

A market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, often as a byproduct of human activities.

Well-Maintained Yard

A property space that is kept in good condition through regular care, such as mowing, watering, and landscaping.

Positive Externality

A beneficial effect experienced by a third party due to an economic transaction that they were not directly involved in.