The Accounting Concept That Requires Financial Statement Information to Be

question 152

Multiple Choice

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:

• A) Business entity assumption.
• B) Monetary unit assumption.
• C) Going-concern assumption.
• D) Time-period assumption.
• E) Objectivity.

---

Definitions:

Collusion

A secret or illegal cooperation or conspiracy, especially between businesses to limit competition and raise prices.

Marginal Cost

The financial outlay involved in producing a supplementary unit of a good or service.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.

Industry Output

The total production of goods and services produced by a specific sector of the economy over a given period.