Some of the Implications of Adopting the Going Concern Assumption

question 15

Multiple Choice

Some of the implications of adopting the going concern assumption are shown in the following accounting practices, except:

• A) justification of using historical cost to measure value of assets.
• B) depreciation of non-current assets.
• C) liquidation of an entity's operations.
• D) inclusion of goodwill in the statement of financial position.

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Definitions:

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A state where resources are allocated in the most efficient manner from the standpoint of society as a whole.

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The total production of goods and services by all firms within a specific industry.

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A statistical measure designed to reflect the price changes of residential housing.