The Accounting Assumption That the Business Will Continue Indefinitely into the Future

question 32

Multiple Choice

The accounting assumption that the business will continue indefinitely into the future is the ________________________ assumption.

• A) accounting period
• B) faithful representation
• C) understandability
• D) going concern

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Definitions:

Cognitive Miser

A theory suggesting that humans, to save mental energy, prefer to solve problems in the simplest way possible rather than in a more sophisticated but effort-intensive way.

Mentally Lazy

A reluctance or lack of desire to engage in cognitive tasks or challenges, preferring minimal mental effort or thought.

Process-oriented

Focused on the methods and procedures of accomplishing tasks or understanding phenomena, rather than solely on outcomes.

Problem Solvers

Individuals or groups that identify, analyze, and find solutions to complex or challenging situations.