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Problem 1: Which basic assumption may not be followed when a firm in bankruptcy reports financial results?
A) Economic entity assumption.
B) Going concern assumption.
c) Periodicity assumption.
D) Monetary unit assumption.
Problem 2: Which accounting assumption or principle is being violated if a company provides financial reports in connection with a new product introduction?
A) Economic entity.
B) Periodicity.
C) Revenue recognition.
D) Full disclosure.
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Question - Externalities can have a significant positive or negative effect on a property's value. Explain concept of externality
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