Which of the Following Statements Regarding the Going Concern Concept

question 50

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 best able to provide an honest and objective assessment of 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:

Constant Rate

A fixed rate at which something occurs or is applied over a particular period of time.

Producing

The process of creating goods or services through the combination of labor, materials, and machinery to meet consumer demand.

Coolers

Devices or containers used to keep items cold or chilled.

Radios

Electronic devices used for receiving sound broadcasts from radio stations, enabling listening to music, news, and other audio content.