What is the going concern assumption? Multiple Choice A) Assumes a company will go out of...
What is the going concern assumption?
Multiple Choice
A) Assumes a company will go out of business if it can't pay its bills
B) Assumes that a company will continue to operate indefinitely
C) Assumes that a company will follow proper accounting rules
D) Assumes that a company should continue to use the same accounting principles
Homework Answers
Option (B) is correct
The going concern assumes that company will continue to operate indefinitely
Add Answer to:
What is the going concern assumption?
Multiple Choice
A) Assumes a company will go out of...
Which of the following statements is false? A. The going concern assumption underlies the preparation of...
Which of the following statements is false? A. The going concern assumption underlies the preparation of financial statements. B. If a company is not a going concern, the classification of its assets and liabilities does not matter. C. The going concern assumption states that the business will continue in operation for the foreseeable future. D. The going concern assumption does not create a foundation for the accounting process.
3 The underlying assumption that presumes a company will continue indefinitely is: Multiple Choice Book Print...
3 The underlying assumption that presumes a company will continue indefinitely is: Multiple Choice Book Print erences Periodicity. Going concern. Economic entity Monetary unit. < Prey 13 of 17 Next > You are screen sharing Stop Share
Cost of goods sold is: Multiple Choice An expense account. A permanent equity account. An asset...
Cost of goods sold is: Multiple Choice An expense account. A permanent equity account. An asset account. A revenue account. Auditors primarily express an opinion on the: Multiple Choice Accuracy of financial statements. Quality of a company's management. O Soundness of a company's future. O O Fairness of financial statements. The assumption central to much of GAAP that in the absence of contrary information, a business entity will continue indefinitely is defined as the: Multiple Choice Going concern assumption. Entity...
4. “ A Going Concern Assumption in accounting” is a very powerful determinant whether a company...
4. “ A Going Concern Assumption in accounting” is a very powerful determinant whether a company has a future. By examining the financial statements of a company, what 6 signs can your glean from the financial statements that suggest the danger? E.g. very small cash balance relative to other assets in the balance sheet. Reporting Entity assumption states that a business enterprise is a legally and economically distinct from its owner or owners. How has the accounting profession respected and...
I need help with 29-32 Use the following to answer questions 29-32 Match the four underlying...
I need help with 29-32
Use the following to answer questions 29-32 Match the four underlying assumptions of Generally Accepted Accounting Principles with its description. Assumption Economic entity Going concern Description a. In the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely The economic life of a company can be divided into artificial time intervals for financial reporting. A common denominator is needed to measure all business activities d. Economic...
The going concern assumption is concerned with a. the company's ability to continue operations long enough...
The going concern assumption is concerned with a. the company's ability to continue operations long enough to carry out its existing obligations. Ob. offsetting management's natural optimism by providing a prudent approach to uncertainty in financial statement items. Oc. any information that is capable of influencing the decisions of anyone using the financial statements. Od. me Isuring ongoing business activities at their exchange price at the time of the initial external transaction.
Required information Ch17 Going Concern Opinions (L017-1, LO17-3, L017-4) Going Concern Opinions Read the case and...
Required information Ch17 Going Concern Opinions (L017-1, LO17-3, L017-4) Going Concern Opinions Read the case and answer the questions that follow. Oftentimes, especially in challenging economic times, companies may not have positive financial results. The professional standards require that auditors evaluate whether there is substantial doubt about the company's ability to continue as a going concern for a reasonable period of time--a year from the balance sheet date. OOK rint CONCEPT REVIEW: Tremendous judgment is involved in this phase of...
E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Match each business assumption...
E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Match each business assumption with its description. ssumptions Descriptions Economic entitya. A common denominator is needed to measure all 2.BGoing concerrn 3. D Periodicity 4. A Monetary unit business activities. particular economic body. is anticipated that a business entity will continue b. Economic events can be identified with a c. In the absence of information to the contrary, it to operate indefinitely. d. The economic life of a...
Question 1 Select the correct characteristic, concept, assumption, or constraint for the following 1. 2. The...
Question 1 Select the correct characteristic, concept, assumption, or constraint for the following 1. 2. The concept that determines when expenses are recognized is called is the process of determining the amount that should be recognized recognition principle requires that companies record in the accounting period in which the performance obligation 3. 4. 5. The amount an asset could be sold for in the market is called occurs when companies use the same accounting principles and methods from year to...
Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do...
Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. a. Allocates expenses to revenues in the proper period. b. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.) c. Ensures that all relevant financial information is reported. d. Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) e....
3 The underlying assumption that presumes a company will continue indefinitely is: Multiple Choice Book Print erences Periodicity. Going concern. Economic entity Monetary unit. < Prey 13 of 17 Next > You are screen sharing Stop Share
Cost of goods sold is: Multiple Choice An expense account. A permanent equity account. An asset account. A revenue account. Auditors primarily express an opinion on the: Multiple Choice Accuracy of financial statements. Quality of a company's management. O Soundness of a company's future. O O Fairness of financial statements. The assumption central to much of GAAP that in the absence of contrary information, a business entity will continue indefinitely is defined as the: Multiple Choice Going concern assumption. Entity...
I need help with 29-32
Use the following to answer questions 29-32 Match the four underlying assumptions of Generally Accepted Accounting Principles with its description. Assumption Economic entity Going concern Description a. In the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely The economic life of a company can be divided into artificial time intervals for financial reporting. A common denominator is needed to measure all business activities d. Economic...
The going concern assumption is concerned with a. the company's ability to continue operations long enough to carry out its existing obligations. Ob. offsetting management's natural optimism by providing a prudent approach to uncertainty in financial statement items. Oc. any information that is capable of influencing the decisions of anyone using the financial statements. Od. me Isuring ongoing business activities at their exchange price at the time of the initial external transaction.
Required information Ch17 Going Concern Opinions (L017-1, LO17-3, L017-4) Going Concern Opinions Read the case and answer the questions that follow. Oftentimes, especially in challenging economic times, companies may not have positive financial results. The professional standards require that auditors evaluate whether there is substantial doubt about the company's ability to continue as a going concern for a reasonable period of time--a year from the balance sheet date. OOK rint CONCEPT REVIEW: Tremendous judgment is involved in this phase of...
E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Match each business assumption with its description. ssumptions Descriptions Economic entitya. A common denominator is needed to measure all 2.BGoing concerrn 3. D Periodicity 4. A Monetary unit business activities. particular economic body. is anticipated that a business entity will continue b. Economic events can be identified with a c. In the absence of information to the contrary, it to operate indefinitely. d. The economic life of a...
Question 1 Select the correct characteristic, concept, assumption, or constraint for the following 1. 2. The concept that determines when expenses are recognized is called is the process of determining the amount that should be recognized recognition principle requires that companies record in the accounting period in which the performance obligation 3. 4. 5. The amount an asset could be sold for in the market is called occurs when companies use the same accounting principles and methods from year to...
Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. a. Allocates expenses to revenues in the proper period. b. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.) c. Ensures that all relevant financial information is reported. d. Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) e....
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