NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
4. The assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is:
| a. | time period. |
| b. | business entity. |
| c. | historical cost. |
| d. | transaction. |
| e. | None of the answers are correct. |
ANS: A PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
5. Valuing assets at their liquidation values is not consistent with:
| a. | conservatism. |
| b. | materiality. |
| c. | going concern. |
| d. | time period. |
| e. | None of the answers are correct. |
ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
6. The business being separate and distinct from the owners is an integral part of the:
| a. | time period assumption. |
| b. | going concern assumption. |
| c. | business entity assumption. |
| d. | realization assumption. |
| e. | None of the answers are correct. |