The Going Concern or Continuity Assumption Is Critical to Financial

question 123

Multiple Choice

The going concern or continuity assumption is critical to financial accounting. The assumption

• A) Is always maintained for all firms for all years.
• B) Supports the use of historical cost valuation for assets rather than market values.
• C) Means that a corporation has a definite ending date.
• D) Requires that we immediately expense prepaid accounts because they do not represent a future cash inflow.

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Definitions:

Face-to-Screen

Relates to interactions that occur through digital interfaces, typically involving individuals and computers or smart devices.

Electronic Images

Visual representations created, stored, and viewed using electronic technology, including photos, graphics, and videos.

Digital Marketspace

An online platform or marketplace where goods and services are bought and sold, leveraging digital technologies.

Traditional Marketplace

A physical market location where goods and services are exchanged between buyers and sellers in a conventional manner.