The "Business Entity" Concept of Accounting Indicates That

question 60

Multiple Choice

The "business entity" concept of accounting indicates that:

• A) a successful business will stay in business.
• B) assets = liabilities + owners' equity.
• C) a business has an existence that is separate from its owner.
• D) accounting information must be useful to the owners and managers of businesses.

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Definitions:

Inverse Relationship

A type of correlation where one variable increases while the other decreases, and vice versa.

Negative Correlation

A linkage between two variables that demonstrates an inverse relationship: one rises as the other falls.

Correlational Research

A research method that examines the relationship between two or more variables to determine if they are associated.

Prediction

The act of making statements or claims about events that will happen in the future based on past and present information or data.