The Principle Prescribing That Financial Statements Reflect the Assumption That

question 4

Multiple Choice

The principle prescribing that financial statements 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)Going-concern principle
• B)Business entity principle
• C)Objectivity principle
• D)Cost principle
• E)Monetary unit principle

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Definitions:

Decision-making Process

The series of steps taken by individuals or businesses to identify and evaluate options before choosing a course of action.

Brands and Suppliers

Refers to the relationship between companies that produce goods (brands) and those that provide the raw materials or components (suppliers).

Reciprocity

A social norm or principle involving mutual exchanges of goods, services, or favors, often used in marketing to enhance customer loyalty.

Buyer-seller Relationship

The dynamic interaction and partnership between a purchaser and a provider of goods or services, often emphasizing trust and communication.