Which of the Following Is NOT an Implication of the Going-Concern

question 22

Multiple Choice

Which of the following is NOT an implication of the going-concern assumption?

• A) The historical cost principle is credible.
• B) Depreciation and amortization policies are justifiable and appropriate.
• C) The current/noncurrent classification of assets and liabilities is justifiable and significant.
• D) Amortizing research and development costs over multiple periods is justifiable and appropriate.

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Definitions:

Societal Beliefs

Collective and widely held perceptions or convictions within a society about what is true, appropriate, and valuable.

Stigma

A mark of disgrace associated with a particular circumstance, quality, or person, often leading to discrimination or social exclusion.

Prevalence

The proportion of a population found to be affected by a particular disease, condition, or characteristic at a specific time.

Maladaptive

Behaviors or thought patterns that are counterproductive and interfere with a person’s ability to function effectively in daily life.