Which One of the Following Assumptions or Principles Most Logically

question 39

Multiple Choice

Which one of the following assumptions or principles most logically supports the preparation of a single set of consolidated financial statements that combines the financial information of several wholly owned but separately identifiable businesses?

• A) historical cost
• B) industry practices
• C) reporting entity
• D) materiality

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Definitions:

Emotional Distress

A state of emotional suffering typically characterized by feelings of anxiety, depression, grief, or anguish.

Subjective Discomfort

Personal feelings of unease, distress, or discomfort which may not be visible or known to others.

Emotional Distress

Negative emotions and psychological strain experienced as a response to various stressors and life events.

Subjective Discomfort

The personal and often unquantifiable feeling of distress or unease that a person may experience.