The Accounting Concept That Requires Every Business to Be Accounted

question 272

Multiple Choice

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

• A)Time-period assumption.
• B)Business entity assumption.
• C)Going-concern assumption.
• D)Revenue recognition principle.
• E)Measurement (Cost)principle.

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Definitions:

Liquidated Debt

A debt of a specific, fixed amount that is acknowledged between parties or determined through a legal process.

Dispute

A disagreement, conflict, or controversy, often necessitating resolution through discussion, negotiation, or legal action.

Money Owed

Refers to funds that are due to be paid by one party to another under the terms of a contract or as a recognized debt.

Unforeseen Circumstances Rule

A principle in contract law that allows parties to a contract to be excused from fulfilling their obligations due to circumstances that were unforeseeable at the time the contract was made.