Which of the Following Statements Regarding the Going Concern Concept

question 31

Multiple Choice

Which of the following statements regarding the going concern concept is FALSE?

• A) Generally accepted accounting principles are based on the going-concern concept.
• B) Dealing with questions of going concern is difficult because auditors are forced to evaluate matters of financial analysis, business strategy, and financial forecasting.
• C) Management is responsible for determining whether there is a significant doubt about a company's ability to continue as a going concern.
• D) Financial difficulties, labour problems, loss of key personnel, litigation, and other such things may be important signals.