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Questions and Answers
Which assumption requires that companies include in the accounting records only transaction data that can be expressed in money terms?
Which assumption requires that companies include in the accounting records only transaction data that can be expressed in money terms?
- Economic entity assumption
- Relevance assumption
- Time period assumption
- Monetary unit assumption (correct)
What does the economic entity assumption require?
What does the economic entity assumption require?
- Combining the activities of the entity with its owner's activities
- Excluding the activities of the entity from financial records
- Allowing the entity to merge with other economic entities
- Keeping the activities of the entity separate from its owner's activities (correct)
In a proprietorship, who is often the manager/operator of the business?
In a proprietorship, who is often the manager/operator of the business?
- Owner (correct)
- Shareholder
- Creditor
- Investor
What does the monetary unit assumption prevent from being included in accounting records?
What does the monetary unit assumption prevent from being included in accounting records?
What is an economic entity?
What is an economic entity?
An economic entity can be any organization or unit in ______
An economic entity can be any organization or unit in ______
The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in ______ terms
The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in ______ terms
An economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its ______
An economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its ______
Sally Rider, owner of Sally’s Boutique, must keep her personal living costs separate from the expenses of the ______
Sally Rider, owner of Sally’s Boutique, must keep her personal living costs separate from the expenses of the ______
A business owned by one person. The owner is often the manager/operator of the ______
A business owned by one person. The owner is often the manager/operator of the ______
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