Financial Statements Are Prepared on the Premise That the Organisation

question 10

Multiple Choice

Financial statements are prepared on the premise that the organisation will continue operations in the foreseeable future.To which financial statement assumption does this relate?

• A) accounting entity
• B) monetary
• C) historical cost
• D) going concern.

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Definitions:

Consumer Product Safety Commission

A U.S. government agency responsible for protecting the public from risks of injury or death from consumer products.

Mandatory Standards

Regulations or requirements that specify minimum acceptable levels for the safety, performance, or reliability of products, services, or practices.

Product Recall

The process of retrieving and replacing defective goods for consumers, typically initiated by the manufacturer or distributor when a safety or quality issue is identified.

Reasonable Basis

A legally justified reason for taking a particular action, often used in tax and legal contexts to demonstrate that decisions were made with adequate grounds.