The Going Concern Assumption

question 271

Multiple Choice

The going concern assumption:

• A) Means that we can express transactions and events in monetary, or money, units.
• B) Means that a business is accounted for separately from other business entities, including its owner.
• C) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
• D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
• E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

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Definitions:

Sporting Events

Organized competitive athletic activities that participants engage in for entertainment, competition, or physical fitness.

State Structures

The organized system of institutions, legal frameworks, and administrative mechanisms through which a state operates and exerts power.

Resist Change

The tendency of individuals or groups to oppose or struggle against modifications in their personal lives, workplaces, or societies.

Constitutions

Foundational legal documents that outline the principles and laws governing a country, state, or organization, including the rights and duties of its citizens.