What Is the Going Concern Assumption

question 91

Multiple Choice

What is the going concern assumption?

• A) Assumes a company will go out of business if it can't pay its bills
• B) Assumes that a company will continue to operate indefinitely
• C) Assumes that a company will follow proper accounting rules
• D) Assumes that a company should continue to use the same accounting principles

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Definitions:

Bimetallic Strip

A mechanical temperature sensor element made of two dissimilar metals bonded together, expanding and contracting at different rates to bend or curve in response to temperature changes.

Excessive Heat

Undesired high temperatures generated in a system or device, often due to inefficiency or overload, leading to potential damage.

Motor Starter

A device that controls the use of electrical power to equipment, specifically to start and stop the motor safely.

Motor Control Center

A centralized assembly of motor starters, controllers, and other devices, housed in a cabinet for power distribution and control in industrial environments.