The Assumption Which Assumes That the Entity Is Able to Pay

question 33

Multiple Choice

The assumption which assumes that the entity is able to pay its debts when they fall due for the near future is the:

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

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Definitions:

Wilcoxon Signed Rank Test Statistic

A non-parametric statistical test used to compare paired samples, assessing whether their population mean ranks differ.

Continuity Correction

An adjustment made to discrete data in order to apply a continuous probability distribution approximation more accurately.

Null Hypothesis

A statement or hypothesis that proposes there is no statistical significance in a set of given observations, suggesting any observed difference is due to sampling or experimental error.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from their average.