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:

Sheltered Workshop

A supportive work environment designed for individuals with disabilities or special needs, providing training and employment opportunities in a supervised setting.

Occupational Training

Training programs designed to equip individuals with skills and knowledge required for specific jobs or careers.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions and feelings.

National Alliance

An organization or coalition formed around shared goals or interests at a national level, though specific aims can vary widely.