In accounting for tangible assets, the continuity assumption is important because of which of the following?

Multiple Choice

It justifies depreciating the asset over its expected useful life, without anticipating that the business will liquidate in the near future.

It is consistent with maintaining assets in the accounting records at market value rather than acquisition cost.

It helps a company decide whether to use straight$-$line depreciation or an accelerated depreciation method.

It provides justification for including residual values in calculating depreciation.