The Going Concern Assumption Is Concerned with

question 99

Multiple Choice

The going concern assumption is concerned with

• A)the company's ability to continue operations long enough to carry out its existing obligations.
• B)any information that is capable of influencing the decisions of anyone using the financial statements.
• C)measuring ongoing business activities at their exchange price at the time of the initial external transaction.
• D)offsetting management's natural optimism by providing a prudent approach to uncertainty in financial statement items.

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Definitions:

Ending Inventory

The sum value of inventory available for purchase at the end of an economic period.

Beginning Inventory

The value of all the goods available for sale at the start of an accounting period; essentially the remaining inventory from the previous period.

Internal Controls

Procedures and mechanisms implemented by a company to ensure integrity in financial reporting, compliance with laws and regulations, and effective and efficient operations.

Physical Count

The process of manually counting actual inventory or assets in person, often for verification purposes against accounting records.