Which of the Following Is an Implication of the Going

question 38

Multiple Choice

Which of the following is an implication of the going concern assumption?

• A)The historical cost principle is credible.
• B)Amortization and amortization policies are justifiable and appropriate.
• C)The current-noncurrent classification of assets and liabilities is justifiable and significant.
• D)All of these.

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Definitions:

Truth-in-Savings Act

A U.S. federal law designed to promote the disclosure of account terms and fees to consumers, particularly regarding savings accounts and interest-earning bank accounts.

Information

A document, prepared by the prosecutor and presented to the magistrate, which demonstrates that there is enough evidence to charge the defendant and bring him or her to trial.

Accounts

Records or statements of financial transactions, reflecting the financial activities of a person or organization.

Negotiable

A term describing an instrument, such as a check or bill of exchange, that can be transferred from one person to another in a manner that the holder in due course acquires a good title.