The ________ Assumption Implies That a Company Will Continue to Use

question 26

Multiple Choice

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

• A) conservatism
• B) relevance
• C) going concern
• D) materiality

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Definitions:

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Product X

A placeholder name commonly used to represent a generic or unspecified product in discussions of economic theory and marketing.

Resources

Natural, human, and capital assets used to produce goods and services.

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the incremental output gained will eventually decrease.