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Questions and Answers
What does the assumption that a business entity will not cease its operations in the near future represent?
What does the assumption that a business entity will not cease its operations in the near future represent?
- Accrual Basis
- Materiality
- Consistency
- Going Concern (correct)
Which concept is related to the idea that a business will continue to operate indefinitely?
Which concept is related to the idea that a business will continue to operate indefinitely?
- Survival Assumption
- Going Concern (correct)
- Sustainable Operations
- Periodic Reporting
In financial accounting, which concept contradicts the assumption that a business entity will continue operating?
In financial accounting, which concept contradicts the assumption that a business entity will continue operating?
- Historical Cost
- Going Concern
- Consistency
- Liquidation Basis (correct)
If a business entity is expected to cease operations soon, which accounting principle would likely be applied?
If a business entity is expected to cease operations soon, which accounting principle would likely be applied?
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What is the primary implication of the Going Concern assumption for financial reporting?
What is the primary implication of the Going Concern assumption for financial reporting?
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