The Assumption That a Business Can Continue to Remain in Operation

question 66

Multiple Choice

The assumption that a business can continue to remain in operation into the future is the:

• A)Monetary unit assumption.
• B)Periodicity assumption.
• C)Economic entity assumption.
• D)Going concern assumption.

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Definitions:

Power Line

Electrical transmission and distribution cables that carry electricity from power plants to end users.

Recognizable Interest

An interest in property or a transaction that is legally identifiable and protectable.

Tenants in Common

A form of co-ownership where each tenant holds an undivided interest in property, but without right of survivorship.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.