The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:
A. Measurement (Cost) Principle.
B. Going-concern assumption.
C. Business entity assumption.
D. Monetary unit assumption.
E. Objectivity principle.
Answer: B
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U.S. GAAP and IFRS require firms to account for minority, active investments, generally those where the investor owns between _____ using the equity method. Under the equity method, the investor recognizes as revenue (expense) each period its share of the net income (loss) of the investee. The investor recognizes dividends received from the investee as a return (reduction) of investment, not as
income. a. 10% and 50% b. 20% and 50% c. 30% and 50% d. 40% and 60% e. 50% and 60%
Generally, contracts are discharged by the performance of the terms of the contract
Indicate whether the statement is true or false
The losses due to human error are minimal, and hence, organizations tend to ignore these losses.
Answer the following statement true (T) or false (F)
The Poisson distribution is closely related to the binomial distribution
a. True b. False Indicate whether the statement is true or false