Q/6

There is a social service agency named Project Plum. This agency does a variety of things and services a number of people in the community within its three different programs. The programs operated by Project Plum used to be separate social service agencies that decided they could get more done as a combined social service agency. When they made the decision to combine their social services, they also considered how they would go about accounting for the revenues and expenses of the business. They decided that even though they were going to combine their financial records into a unified report, they still needed to track and record their individual activity separately, especially because they get funding (revenue) from various sources. Which accounting principle best describes this situation?

a. Time period assumption

b. Monetary unit assumption

c. Going concern assumption

d. Economic entity assumption