The Business Entity Assumption

question 115

Multiple Choice

The business entity assumption:

• A) 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.
• B) Means that we can express transactions and events in monetary, or money, units.
• C) Means that a business is accounted for separately from other business entities, including its owner.
• D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
• E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

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Definitions:

Leadership Styles

Describes the various approaches and methods leaders use to motivate, guide, and manage teams or organizations.

Classic Styles

Traditional or longstanding approaches or designs that have withstood the test of time in various fields such as fashion, architecture, or literature.

Fiedler's Contingency Theory

A leadership model proposing that effective leadership depends on the match between a leader's style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Task-motivated Leaders

Leaders who focus primarily on accomplishing specific goals and tasks and organizing work and teams efficiently to achieve such objectives.