Under the Going Concern Assumption

question 15

Multiple Choice

Under the going concern assumption:

• A)an entity is viewed as continuing in business for the foreseeable future.
• B)an entity is viewed as not likely to continue in operation for the foreseeable future.
• C)an entity's assets and liabilities are recorded at liquidation values.
• D)an entity is considered to be a separate legal entity from its owners.

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Definitions:

Interest Revenue

Income that is earned from investments, savings, bonds, or other interest-bearing accounts over a particular period.

Interest Paid

The amount of money paid over time for the use of borrowed funds.

Dividends Received

Payments received by an investor or a company from owning shares in another company.

Corporation Owns

Assets or property held by a corporation, which can include cash, inventory, equipment, and real estate.