Transfer of Ownership Will Affect the Continuity of a

question 18

Multiple Choice

Transfer of ownership will affect the continuity of a

• A)corporation.
• B)sole proprietorship.
• C)partnership.
• D)sole proprietorship or partnership.

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Definitions:

Basic Assumption

Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.

Corporate Form

The structure of a corporation, recognized by law as a single entity separate from its owners, with its own rights, privileges, and liabilities.

Economic Entity Assumption

This accounting principle assumes that a company's financial activities are distinct from those of its owners or other businesses.

Accounting Concept

Fundamental principles or theories that underpin financial accounting practices, such as the matching principle or accrual basis accounting.