The CEO of a Business Owns a Home and Two

question 64

Multiple Choice

The CEO of a business owns a home and two automobiles.The company the CEO works for also owns automobiles and a home in a remote area used for strategic planning meetings by its executives.Which principle or assumption "draws a sharp boundary" around the possessions of the CEO and the assets of the business for which he works?

• A) the entity assumption
• B) the stable-monetary-unit assumption
• C) the going-concern assumption
• D) the objectivity assumption

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Definitions:

Vertex

A point where two or more curves, edges, or lines meet, often used to describe the corner point of a polygon or the peak or trough of a parabola.

Parabola

A symmetric curve formed by the intersection of a cone with a plane parallel to a straight line, generatrix, of the cone.

Initial Velocity

The velocity of an object at the start of a time interval.

Coin

A piece of metal, usually flat and circular, authorized by a government for use as money.