The Going Concern Assumption

question 20

Multiple Choice

The going concern assumption:

• A)Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
• B)Means that we can express transactions and events in monetary,or money,units.
• C)Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods.
• D)Means that a business is accounted for separately from other business entities,including its owners.
• E)Prescribes that a company record the expenses it incurred to generate the revenue reported.

---

Definitions:

Ventures

Refers to new business activities or projects that involve risk but have the potential for significant reward.

Acquisitions

The act of acquiring control of a company by another company through purchasing a majority stake or its entirety.

Profitability

The ability of a business or project to generate earnings compared to its expenses and investments.

Competition

The rivalry between companies or individuals for market share, recognition, or financial gain.