The Accounting Principle That Requires Financial Statements to Reflect the Assumption

question 91

Multiple Choice

The accounting principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

• A) Cost principle.
• B) Business entity principle.
• C) Going concern principle.
• D) Monetary unit principle.
• E) Revenue recognition principle.

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, leading to psychotic episodes.

Substance Use Disorder

A complex condition characterized by uncontrolled use of substances despite harmful consequences, leading to significant impairment or distress.

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Fear

An emotional response to an immediate threat or danger, characterized by feelings of anxiousness and apprehension.