The Going Concern Assumption Is Concerned with

question 99

Multiple Choice

The going concern assumption is concerned with

• A)the company's ability to continue operations long enough to carry out its existing obligations.
• B)any information that is capable of influencing the decisions of anyone using the financial statements.
• C)measuring ongoing business activities at their exchange price at the time of the initial external transaction.
• D)offsetting management's natural optimism by providing a prudent approach to uncertainty in financial statement items.

---

Definitions:

Money Income

The total income a person or entity receives in monetary form, including wages, salaries, benefits, and income from investments.

Marginal Rate

A term used to describe the rate at which one variable changes as another variable changes by a single unit, often applied in economic analysis like the marginal tax rate or marginal rate of substitution.

Substitution

The act of replacing one good or service with another due to changes in price or preference.

Price Ratio

The relative price of one good or service in comparison to another, often used in economic analysis and decision-making.