Which of the Following Is a Characteristic of the Going-Concern

question 173

Multiple Choice

Which of the following is a characteristic of the going-concern assumption?

• 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

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Definitions:

Social Contract

A theory or model that explains how society is organized and individuals' mutual obligations based on an agreement among the society’s members or between the governed and the government.

Maintaining Social Order

Efforts or mechanisms put in place to ensure societal rules and norms are followed, allowing for stable, peaceful coexistence within a community.

Conventional Morality

A stage of moral development where individuals' behavior is shaped by conforming to society's norms and expectations.

Kohlberg's Stages

A theory proposed by Lawrence Kohlberg that outlines the stages of moral development individuals go through, from basic obedience to complex ethical and moral reasoning.