Which One of the Following Is an Assumption Made in the Preparation

question 180

Multiple Choice

Which one of the following is an assumption made in the preparation of financial statements?

• A)Financial statements are prepared for a specific entity that is distinct from the entity owners.
• B)Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit
• C)Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time.
• D)Market values are always assumed to be irrelevant when preparing financial statements.

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Definitions:

Ethnic Minority

A group of people who differ in race, religion, or cultural background from the majority population in a specific area.

Cultural Background

Cultural background encompasses the societal, ethnic, linguistic, and familial influences that shape an individual's experiences and worldview.

Magnetic Field

A vector field that describes the magnetic influence on moving electric charges, electric currents, and magnetic materials.

Clinical Interview

A method used in psychology to gather information about an individual's psychological state through direct conversation, often used in diagnosis and assessment processes.