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.

Identify and classify costs as fixed, variable, mixed, or step-variable.

Calculate and understand the impact of changes in activity levels on various cost components and total costs.

Apply the concept of the contribution margin in business decision-making.

Develop proficiency in calculating average costs per unit for variable and fixed cost components within the relevant range.

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Definitions:

Unconditioned Response

A spontaneous, innate response to a trigger that happens without any previous training or conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers an unconditioned response without prior conditioning.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through classical conditioning.