Generally Accepted Accounting Principles Are Based on the Going-Concern Concept

question 16

Multiple Choice

Generally accepted accounting principles are based on the going-concern concept.Thus,an opinion that financial statements are in conformity with GAAP means that continued existence may be presumed for a "reasonable time",which is considered to be ________.

• A)at least one year beyond the date of the financial statements
• B)at least six months beyond the date of the financial statements
• C)at least two years beyond the date of the financial statements
• D)at least five years beyond the date of the financial statements

---

Definitions:

Forcibly Evict

The act of removing a tenant from rental property by force or through legal proceedings because of violations of the lease or law.

Unjustifiably Vacates

Refers to the act of leaving or abandoning a position or place without valid reason or justification.

Notice Before Eviction

A legal requirement to inform tenants of impending eviction proceedings and the time frame in which it will happen.

Implied Warranty of Habitability

This is a legal doctrine that implies residential rental properties meet basic living and safety standards.