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.

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Definitions:

Directional Selection

A type of natural selection in which one extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time in the direction of that phenotype.

Selection Differential

A measure of the difference between the mean phenotype of the selected parents and the mean phenotype of the general population.

Narrow Sense Heritability

A measure of how much of the variance in a trait among individuals in a population is due to additive genetic factors.

Neck Length

A physical trait referring to the distance from the base of an animal's skull to its shoulders, significant in studies of natural selection and adaptation.