The Monetary Assumption

question 178

Multiple Choice

The monetary assumption:

• A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
• B) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
• C) Means that we can express transactions and events in monetary, or money, units.
• D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
• E) Means that a business is accounted for separately from other business entities, including its owner.

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Definitions:

Nitrogenous Wastes

are byproducts of protein and nucleic acid metabolism that organisms must excrete, including urea, ammonia, and uric acid.

Malpighian Tubules

Excretory tubes uniquely found in the digestive system of insects and arachnids, serving to remove waste products from the blood.

Major Nitrogenous Waste

The primary form of nitrogen excreted by organisms, which varies among species (urea in mammals, uric acid in birds and reptiles, and ammonia in aquatic organisms).

Annelids

A phylum of segmented worms that includes earthworms and leeches, characterized by their segmented bodies and presence in diverse habitats.