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:

Desired Results

The intended or sought-after outcomes of an action, plan, or strategy.

Management Function

Refers to the primary roles and practices that managers undertake to achieve organizational goals, including planning, organizing, leading, and controlling.

Motivating

The act of encouraging someone's excitement or eagerness to engage in an activity.

Inspiring

The act of motivating and stimulating others to engage, envision, or perform towards achieving particular goals or ideals with enthusiasm.