The Major Underlying Assumptions of Accounting Include All of the Following

question 34

Multiple Choice

The major underlying assumptions of accounting include all of the following except:

• A)Economic entity.
• B)Monetary unit.
• C)Legal liability.
• D)Going concern.

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Definitions:

Kellogg-Briand Pact

An international agreement signed in 1928, in which signatory states pledged to renounce war as a means of national policy and settle disputes by peaceful means.

Renounced War

The formal act of declaring the rejection or abandonment of the use of war as a means to resolve disputes or achieve objectives.

National Policy

A set of decisions and actions taken by a government concerning internal and external affairs to guide the nation's goals and achieve desired outcomes.

Repaying Debts

The process of returning borrowed money to the lender, usually under agreed-upon terms and conditions.