If It Becomes Apparent to an Entity That New Events

question 27

Multiple Choice

If it becomes apparent to an entity that new events or conditions have resulted that indicate that the entity is no longer a going concern,the entity must:

• A) treat this as a non-adjusting event and discloses the reason for the breach of the going concern assumption.
• B) treat this as an adjusting event and adjust the affected accounts in the financial report.
• C) must prepare its financial report on a going concern basis and ask the auditor to indicate in the opinion the breach of the going concern basis.
• D) must prepare the financial reports adopting a fundamental change in the basis of accounting, say use of liquidation values instead of modified historical cost basis.
• E) None of the given answers.

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Definitions:

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes, norms, and perceived control.

Academic Self-concept

An individual's perception of their own academic abilities or skills.

Academic Self-efficacy

An individual's belief in their own ability to succeed in academic tasks.

Academic Disidentification

A psychological process where students detach their sense of self-worth from their academic performance.