Which of the Following Is a Key Assumption Underlying the Preparation

question 10

Multiple Choice

Which of the following is a key assumption underlying the preparation of financial statements?

• A) the going concern basis of accounting
• B) the matching principle
• C) the prudence principle
• D) the historical cost measurement basis

---

Definitions:

Anticipate

To expect or predict something based on current trends or information.

Oligopoly

A market structure characterized by a small number of firms whose decisions about prices and output mutually influence one another.

Oligopolists

Oligopolists are firms within an oligopoly, a market structure characterized by a small number of firms dominating the market, often leading to limited competition.

Compete On Price

A business strategy focusing on offering goods or services at lower prices than competitors to attract customers.