The Going Concern Assumption Assumes That the Business

question 165

Multiple Choice

The going concern assumption assumes that the business

• A)will be liquidated in the near future.
• B)will be purchased by another business.
• C)is in a growth industry.
• D)will remain in operation for the foreseeable future.

---

Definitions:

Complements

Products or services that are used together, such that the demand for one increases the demand for the other.

Current Margin

The present profit margin; the difference between the sales revenue and the cost of goods sold at the current time.

Desired Margin

The profit margin a company aims for over the cost of a product or service.

Increase Price

The act of raising the cost at which goods or services are sold, usually to reflect higher production costs or to gain greater profit margins.