The Continuity Assumption Is Inappropriate When

question 48

Multiple Choice

The continuity assumption is inappropriate when

• A) liquidation appears likely.
• B) fair values are higher than costs.
• C) the business is organized as a proprietorship.
• D) the business is just starting up.

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Definitions:

Situational and Environmental Factors

External influences that affect individual behaviors and decision-making processes, including physical, social, and organizational contexts.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and rules.

Lawrence Kohlberg

A psychologist known for his theory of moral development, which outlines the progression of moral reasoning through distinct stages.

SMART Goal

A framework for setting clear, well-defined objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound.