The Accounting Principle That Assumes That a Company Will Operate

question 81

Multiple Choice

The accounting principle that assumes that a company will operate in the foreseeable future is:

• A)Going concern.
• B)Objectivity.
• C)Liquidity.
• D)Disclosure.

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Definitions:

Delegation

The process of assigning responsibility and authority to others to carry out specific tasks while maintaining accountability for the outcome.

Empower People

The act of granting individuals or groups more autonomy and control over their work or personal lives, often focusing on enabling them to make decisions and contribute to important processes or outcomes.

Organization Levels

Refers to the hierarchy within an organization, starting from the top with the board of directors or CEO, moving down through middle management, and reaching the operational employees at the bottom.

Centralization

The concentration of decision-making authority at the top levels of an organizational hierarchy.