Which of the Following Statements Is Correct in Relation to the Assumptions

question 2

Multiple Choice

Which of the following statements is correct in relation to the assumptions to be made when preparing financial reports?

• A) The conceptual framework requires that several assumptions be made when preparing financial reports
• B) There are no assumptions to be made when preparing financial reports
• C) There is one underlying assumption which is that financial reports are prepared on a going concern basis
• D) There is an assumption that more information is better than less

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Definitions:

Energy Consumption

The amount of energy or power used by physical or biological entities.

Kcal/min

A unit of measure for the rate of energy expenditure, indicating kilocalories expended per minute.

Cluster Sampling

A sampling technique where the population is divided into clusters, and a random sample of these clusters is selected to represent the whole population.

Pulitzer Prize

The Pulitzer Prize is an award for achievements in newspaper, magazine and online journalism, literature, and musical composition within the United States.