The Going Concern Assumption Is Concerned with

question 22

Multiple Choice

The going concern assumption is concerned with

• 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:

Norms

Rules or expectations that are socially enforced, guiding behavior and actions within a society or group.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior, with consequences for violation.

Generation

An age group that has unique and formative historical experiences.

Age Cohort

A group of individuals who share similar ages, and hence, are likely to have shared experiences, attitudes, and transitions.