Which of the Following Is an Assumption Made in the Preparation

Multiple Choice

Which of the following is an assumption made in the preparation of the financial statements?

A) Financial statements are prepared for a specific entity that is distinct from the entity's owners.
B) The current market value is assumed to be more relevant than the original cost paid.
C) The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time.
D) Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit.