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:

Production Possibilities Curve

A curve that outlines all possible combinations of total output that could be produced, assuming (1) a fixed amount of productive resources, (2) a given amount of technical knowledge, and (3) full and efficient use of those resources. The slope of the curve indicates the amount of one product that must be given up to produce more of the other.

Economic Organization

The structured systems and institutions through which economic activity is conducted and regulated, including markets, firms, and government agencies.

Capital Stock

The total value of all physical assets owned by a company or country, used in the production of goods and services.

Comparative Advantage

The economic principle that a country or entity benefits by producing goods or services for which it has a lower opportunity cost than its trading partners.