The Rule That Requires Financial Statements to Reflect the Assumption

question 272

Multiple Choice

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

• A) Objectivity principle.
• B) Monetary unit assumption.
• C) Business entity assumption.
• D) Going-concern assumption.
• E) Measurement (Cost) Principle.

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Definitions:

Marital Relationships

The dynamic and interaction between spouses or partners legally recognized as married, including their emotional and physical bond.

Cohabitation

Being in a romantic and sexual relationship with someone without going through the process of getting married.

Intimate Relationships

Deeply personal and close connections between individuals, characterized by affection, love, trust, and mutual respect.

Sexual Exclusivity

The practice or agreement to engage in sexual activities with only one partner, often within the context of a romantic relationship.