The Assumption That the Assets and Liabilities of the Business

question 47

Multiple Choice

The assumption that the assets and liabilities of the business are accounted for on the books of the company but not included in the records of the owner is the:

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

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Definitions:

Future Value

An asset or cash's future worth that is equal to a designated sum in the present day.

Savings Plan

A strategic approach to setting aside a portion of one's income for future use or emergencies.

Compounded Monthly

Interest on an investment or loan is calculated and added to the principal amount on a monthly basis.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle for individuals to save for retirement on a tax-sheltered basis.