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81. What accounting concept justifies the usage of accruals and deferrals? Going concern assumption

b. Materiality constraint c.

Consistency characteristic d. Monetary unit assumption

82. a. b. c. d.

The assumption that a business enterprise will not be sold or liquidated in the near future is known as the

economic entity assumption. monetary unit assumption. conservatism assumption. none of these. a.

83. Which of the following is an implication of the going concern assumption? The historical cost principle is credible.

b. c. d. Depreciation and amortization policies are justifiable and appropriate. The current-noncurrent classification of assets and liabilities is justifiable and signify-cant. All of these.


Proponents of historical cost ordinarily maintain that in comparison with all other valuation alternatives for general purpose financial reporting, statements prepared using historical costs are more

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