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:

Refugee

A person who has been forced to leave their country in order to escape war, persecution, or natural disaster.

Persecuted

Subjected to harassment, punishment, or harm, often due to political, religious, or ethnic affiliation, without just cause or legal proceedings.

Asylum Seeker

An individual who is seeking international protection from dangers in their home country but whose claim for refugee status has not yet been determined.

Free Market Capitalism

An economic system based on supply and demand with minimal government intervention.