Which One of the Following Is an Assumption Made in the Preparation

question 180

Multiple Choice

Which one of the following is an assumption made in the preparation of financial statements?

• A)Financial statements are prepared for a specific entity that is distinct from the entity owners.
• B)Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit
• C)Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time.
• D)Market values are always assumed to be irrelevant when preparing financial statements.

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Definitions:

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An approach in social theories related to the study of social movements, focusing on the ability of members of a movement to acquire resources and mobilize people in order to achieve their goals.

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An American progressive, public policy advocacy group and political action committee that raises funds and mobilizes volunteers for various social and political causes.