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:

Retirement Savings Contributions Credit

A tax credit offered to lower-income individuals to encourage retirement savings, reducing tax liability for eligible contributions to retirement accounts.

Modified AGI

Adjusted Gross Income after adding back certain deductions, used to determine eligibility for certain tax benefits.

Qualified Retirement Plan

A retirement savings plan recognized by the IRS that offers tax benefits, such as deferral of income taxes on contributions and earnings.

Contributed

Refers to the act of providing or donating resources, such as money, time, or assets, towards a specific cause, project, or investment.