The Going Concern Concept Refers to a Presumption That

question 50

Multiple Choice

The going concern concept refers to a presumption that:

• A)the entity will be profitable in the coming year.
• B)the entity will not be involved in a merger within a year.
• C)the entity will continue to operate in the foreseeable future.
• D)top management of the entity will not change in the coming year.

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Definitions:

Total Revenue

The aggregate financial gains a corporation obtains from the sale of products or rendition of services within a designated duration.

Profit

The financial gain realized when the revenue earned from selling goods or services exceeds the costs, expenses, and taxes needed to sustain the activity, indicating the financial success of a business.

Total Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.