A Local Businessman Owns Several Different Companies

question 58

Multiple Choice

A local businessman owns several different companies. His accountant prepares separate financial statements for each of these businesses. This is an application of the

• A) full disclosure principle.
• B) periodicity assumption.
• C) going concern assumption.
• D) economic entity assumption.

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Definitions:

Misinformation Effect

The phenomenon where a person's recall of episodic memories becomes less accurate due to post-event information.

Repressed Memory

A controversial concept suggesting that memories of traumatic events can be pushed out of conscious awareness, potentially to resurface later.

Slaves

People who were forced into bondage and ownership by others, deprived of personal freedom and compelled to perform labor or services without compensation.

State

A politically organized body of people usually occupying a defined territory and governed by an authority that has the power to make and enforce laws.