In Accounting for Tangible Operational Assets,the Continuity Assumption Is Important

question 72

Multiple Choice

In accounting for tangible operational assets,the continuity assumption is important because of which of the following?

• A)It helps a company decide whether to use straight-line depreciation or an accelerated depreciation method.
• B)It justifies depreciating the asset over its expected useful life,without anticipating that the business will liquidate in the near future.
• C)It provides justification for including residual values in calculating depreciation.
• D)It is consistent with maintaining assets in the accounting records at market value rather than acquisition cost.

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Definitions:

Melting Pot

An analogy used to describe a community where diverse groups of individuals merge into a single entity, frequently sacrificing their unique cultural characteristics.

Cultural Integration

The process through which individuals from different cultural backgrounds come to live together harmoniously by adopting and sharing each other's practices and beliefs.

Common Language

A language shared by the members of a community, nation, or group, enabling communication and mutual understanding.

Functionalism

A viewpoint in sociology that views society as an intricate system in which its components cooperate to foster unity and steadiness.