Which of the Following Statements About the Going Concern Assumption

question 21

Multiple Choice

Which of the following statements about the going concern assumption is not true?

• A) it can justify the use of historical costs when measuring non-current assets.
• B) it supports the use of assets such as Prepaid Expenses.
• C) it supports the systematic allocation of depreciation over an asset's useful life.
• D) it is used when an entity goes into liquidation.

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Definitions:

Freud's Psychoanalytic Theory

A psychological perspective that emphasizes unconscious processes and childhood experiences in shaping behavior and personality.

Oral Needs

In psychoanalytic theory, needs associated with the oral stage of psychosexual development, where an infant's pleasure centers on activities involving the mouth, such as sucking and chewing.

Attachment

An emotional bond that typically forms between infant and caregiver, influencing patterns in relationships throughout life.

Educational Neglect

The failure of a caregiver to ensure a child receives appropriate schooling or educational opportunities.