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:

Logical But Impractical Decisions

Decisions that make sense from a rational standpoint but are not feasible or practical in reality.

Increased Uncertainty

Refers to situations where there is a higher degree of unpredictability regarding the future or outcomes of events.

Group-Aided Decision Making

A process where decisions are made collectively by a group of individuals rather than by a single person, enhancing diversity of thought and perspectives.

Sociotechnical Decision Making

Decision-making processes that consider both the social and technological aspects of an organization to optimize both human and technical systems.