Which Statement About the Financial Statement Assumptions Is NOT True

question 39

Multiple Choice

Which statement about the financial statement assumptions is NOT true?

• A) Assets are originally recorded at cost.
• B) Revenue is recorded when received and expenses are recorded when they are incurred.
• C) Going concern means that financial statements are prepared on the basis that the business entity will continue operation in the foreseeable future.
• D) The life of a business is divided into equal periods.

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Definitions:

Alternatives

Different options or choices available in a decision-making process that can be considered when planning strategies or solving problems.

Systematically Evaluating

The process of methodically assessing or examining something to determine its value, effectiveness, or significance based on set criteria.

Measurement

The process of quantitatively assessing or determining the magnitude, amount, or degree of something.

Calculation

The process of using mathematical techniques to determine a numerical result or assess a financial situation.