The Going Concern Assumption

question 113

Multiple Choice

The going concern assumption:

• A)is applicable to all financial statements.
• B)primarily involves periodic income measurement.
• C)allows for the statements to be prepared under generally accepted accounting principles.
• D)requires that accounting procedures be the same from period to period.
• E)none of the answers are correct.

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Definitions:

Marginal Analysis

Scrutinizing the bonus benefits of an activity alongside the supplementary costs it brings.

Additional Slice

Refers to an extra unit or portion of a product or service added beyond the current amount.

Efficiency

The optimal use of resources to achieve the desired ends with minimum waste or effort.

Equity

The concept of fairness or justice within the economy that deals with the distribution of wealth and resources.