Which Accounting Assumption Requires an Accountant to Be Able to Clearly

question 10

Multiple Choice

Which accounting assumption requires an accountant to be able to clearly identify the transactions to be recorded, classified and summarised into an entity's financial statements?

• A) accrual basis assumption.
• B) going concern assumption.
• C) accounting equation assumption.
• D) accounting entity assumption.

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Definitions:

Outsourcing

“Contracting out” or transferring to another country the labor that a company might otherwise have employed its own staff to perform; typically done for financial reasons.

Commodity Chains

The network of production and distribution processes through which a product passes until it reaches the consumer, often spanning multiple countries.

Sweatshop

A workplace where workers are subject to extreme exploitation, including below-standard wages, long hours, and poor working conditions that may pose health or safety hazards.

Race To The Bottom

A socio-economic phenomenon where countries or companies compete by undercutting each other in standards, such as labor rights and environmental regulations, to attract business.