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:

Detrital Food Web

Complex pattern of interlocking and crisscrossing food chains, beginning with detritus.

Base

Molecules tending to lower the hydrogen ion concentration in a solution and thus raise the pH numerically.

Ultimate Source

The primary origin from which something derives or is obtained.

Organisms

Any living individual entity that can carry out life processes such as growth, reproduction, and metabolism.