The Going Concern or Continuity Assumption Is Critical to Financial

question 123

Multiple Choice

The going concern or continuity assumption is critical to financial accounting. The assumption

• A) Is always maintained for all firms for all years.
• B) Supports the use of historical cost valuation for assets rather than market values.
• C) Means that a corporation has a definite ending date.
• D) Requires that we immediately expense prepaid accounts because they do not represent a future cash inflow.

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Definitions:

Biological Indicators

Organisms or components of organisms that are used to assess the health of a natural ecosystem or the presence of pollutants.

Bathyal Zone

A region of the ocean depths ranging from 200 to 2,000 meters below the surface, characterized by its limited light penetration and distinct marine life.

Phytoplankton

Microscopic plant-like organisms that live in aquatic environments, capable of photosynthesis, and form the base of the oceanic food chain.

Aquatic Life Zones

Specific areas in bodies of water, categorized by depth, light penetration, temperature, and other factors, that support various forms of life, including freshwater and marine ecosystems.