Which of the following is not correct about Going Concern? O a. The concept of going concern is an underlying assumption in the preparation of financial statements O b. The financial statements presume that the entity is a going concern and will continue its operations for the foreseeable future O C. Assume that the business will continue to operate long enough to carry out its current obligations, objectives and commitments O d. The concept of going concern is a conservative in the preparation of financial statements

Which of the following is not correct about Going Concern? O a. The concept of going concern is an underlying assumption in the preparation of financial statements O b. The financial statements presume that the entity is a going concern and will continue its operations for the foreseeable future O C. Assume that the business will continue to operate long enough to carry out its current obligations, objectives and commitments O d. The concept of going concern is a conservative in the preparation of financial statements

Name: Which of the following is not correct about Going Concern?a. The conc
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Which of the following is not correct about Going Concern?a. The concept of going concern is an underlying assumption in the preparation of financial statementsO b. The financial statements presume that the entity is a going concern and will continu

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 4MC: Which of the following terms is used when assuming a business will continue to operate in the...

See similar textbooks

Similar questions

That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
Which of the following terms is used when assuming a business will continue to operate in the foreseeable future? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
Which management assertion addresses whether the components of the financial statements arc properly classified, described, and disclosed? a. Completeness. b. Existence. c. Rights and obligations. d. Presentation and disclosure. c. None of the above address whether the components of the financial statements arc properly classified, described, and disclosed.
Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Each of the following situations relates to a different company. A. For each of these independent situations, find the missing amounts. B. How would stakeholders view the financial performance of each company? Explain.
Financial accounting information ________. A. should be incomplete in order to confuse competitors B. should be prepared differently by each company C. provides investors guarantees about the future D. summarizes what has already occurred
Which of the following is considered a constraint on useful information by Statement of Financial Accounting Concepts No. 8? a. benefits costs b. conservatism c. timeliness d. verifiability
Which of the following accounting concepts requires that financial statements be prepared under the assumption that the business will continue to operate into the foreseeable future? A) Going concern B) Consistency C) Materiality D) Conservatism
Which of the following concepts states that a business will continue its operations for the foreseeable future and the company will not be forced to liquidate in the near future? a. Accrual basis b. Materiality c. Consistency concept d. Going concern
According to the principle of Conservatism it is defined that whenThere are many ways to determine accounting results (all equally acceptable) the method that has the least favorable effect on net profit and assets should be chosen.Give two examples of the choice of accounting practices and then document how the principle of Conservatism protects the Shareholders and financiers of an entity
Choose the answer which is not true about the conceptual framework for financial reporting. a. the conceptual framework forms the theoretical foundation of accounting b. the conceptual framework constitutes the highest level of authoritative status c. the conceptual framework serves as the guide for the development & revision of accounting standards d. all of the foregoing statements are correct about the conceptual framework for financial reporting
Which one of the following statements is not correct regarding financial accounting and management accounting ? a . None of the given answers b. Financial accounting information emphasize supporting decisions that affect the future unlike management accounting information , which focus on the consequences of past activities of the organization . c. Financial accounting needs to follow specific set of rules called accounting standards unlike Management accounting d. Both financial accounting and management accounting involve the use of accounting information . e. Financial accounting reports need to be audited to verify their accuracy unlike management accounting reports which do not need to be audited .