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:

Cerebral Cortex

The outer layer of brain tissue, crucial for complex cognitive functions such as thought, memory, consciousness, and language.

Prefrontal Cortex

The front part of the frontal lobe of the brain, key in decision making, social behavior, and personality expression.

Association Areas

Regions of the brain that integrate information from different sensory inputs and are involved in complex processes such as learning, language, and decision-making.

Formulate Plans

The process of creating strategies or outlining actions to achieve specific goals.