Which of the following basic assumptions of accounting (used by the International Accounting Standards Board) makes depreciation and amortization policies justifiable and appropriate?
A) Periodicity.
B) Decision usefulness
C) Monetary unit.
D) Going concern.

Question

Quizplus · Accepted Answer

The going concern assumption assumes that a business entity will continue to operate in the foreseeable future. Therefore, it justifies the use of depreciation and amortization policies which allocate the cost of assets over their useful lives instead of expensing the whole cost in the year they are acquired.

Which of the Following Basic Assumptions of Accounting (Used by the International