The Going Concern Assumption

question 155

Multiple Choice

The going concern assumption

• A) states that a company will not operate long enough to utilize assets and fulfill obligations.
• B) assumes the company will continue to operate in the foreseeable future.
• C) is inconsistent with the cost principle.
• D) states that net worth is the most appropriate value at which to record assets.

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Definitions:

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Sherif

An influential social psychologist known for his work on understanding group conflicts, social norms, and conformity through the Robbers Cave experiment.

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