The Going Concern Assumption

question 271

Multiple Choice

The going concern assumption:

• A) Means that we can express transactions and events in monetary, or money, units.
• B) Means that a business is accounted for separately from other business entities, including its owner.
• C) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
• D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
• E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

---

Definitions:

Fashion Companies

Businesses engaged in the design, production, marketing, and sale of clothing, footwear, and accessories, reflecting current trends and styles.

ISO 9000

A set of international standards for quality management and quality assurance designed to help companies effectively document and maintain an efficient quality system.

Industry

A sector of the economy that produces a specific type of goods or services, characterized by shared challenges, opportunities, and regulations.

Economic Activity

Represents the actions that involve the production, distribution, and consumption of goods and services within an economy.