The Going Concern Concept Refers to a Presumption That

question 50

Multiple Choice

The going concern concept refers to a presumption that:

• A)the entity will be profitable in the coming year.
• B)the entity will not be involved in a merger within a year.
• C)the entity will continue to operate in the foreseeable future.
• D)top management of the entity will not change in the coming year.

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Definitions:

Desirable

Qualities or features that are attractive or sought-after in various contexts, such as products, traits, or outcomes.

Undesirable

A characteristic or condition deemed negative, unwanted, or harmful in a particular context.

Subjective

Based on or influenced by personal feelings, tastes, or opinions.

Objective Bases

The foundation or criteria that are independently verifiable and not influenced by personal feelings or opinions.