The Going Concern Assumption Is Inappropriate When

question 54

Multiple Choice

The going concern assumption is inappropriate when

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

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Definitions:

Pillars

Fundamental principles or structures that support or hold up a system, organization, or ideology.

Business Sustainability

refers to the strategies and practices a company employs to manage its environmental, social, and economic impacts while ensuring longevity and success.

International Guidelines

Agreed-upon principles or criteria set by international bodies or agreements to guide actions and policies across nations.

Organisations

Entities comprising multiple people working together towards common goals or objectives, structured to accomplish tasks and achieve efficiency.