Which of the Following Is an Assumption Made in the Preparation

question 131

Multiple Choice

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

• A)Financial statements are prepared for a specific entity that is distinct from the entity's owners.
• B)The current market value is assumed to be more relevant than the original cost paid.
• C)The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time.
• D)Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit.