The Principle Prescribing That Financial Statements Reflect the Assumption That

question 108

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:

Timeframe

A specific period during which events, processes, or conditions occur or are scheduled to take place.

Required Rate Of Return

The required rate of return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Expected Rate Of Return

The profit or loss one anticipates on an investment over a certain period of time, expressed as a percentage.

Trust Fund

A legal entity established to hold assets for the benefit of certain persons or entities, with a trustee managing the assets for the beneficiaries.