The Major Underlying Assumptions of Accounting Include All of the Following

question 20

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:

Statement of Cash Flows

A financial document that provides detailed information about the cash inflows and outflows for a business over a specific period of time.

Operating

Pertaining to the core activities necessary for a business to function, including production, sales, and distribution.

Financing

The process of providing or securing funds for business activities, making purchases, or investing.

Investing

The act of allocating resources, often financial, in hopes of generating an income or profit.