Question: What is a 'going concern' and why is it important in accounting?

What is a 'going concern' and why is it important in accounting?

Step by Step Solution

★★★★★

3.37 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A going concern refers to a company that is expected to ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Information Systems Questions!

Q:

A long solid cylinder of radius 0.8 m hinged at point A is used as an automatic gate. When the water level reaches 5 m, the gate opens by turning about the hinge at point A. Determine (a) the...

Q:

Read and complete the following Case: Ethics and the Coronavirus below. Address each question in the case. Please see the attached document. Your submission should be substantive and supported by...

Q:

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Q:

1. Classify costs by behaviour in the existing context 2. Use available data as estimates in the analyses and assess their applicabilityin the analysis. 3. Adjust the breakeven analysis to consider a...

Q:

I just want to ensure I am on the right track. The question I would like an answer to is "Should HT be assigned a going concern classification ? why or why not? Consider whether the amounts in...

Q:

I just want to ensure I am on the right track. The question I would like an answer to is "Should HT be assigned a going concern classification ? why or why not? Consider whether the amounts in...

Q:

I just want to ensure I am on the right track. The question I would like an answer to is "Should HT be assigned a going concern classification ? why or why not? Consider whether the amounts in...

Q:

Select the correct characteristic, concept, assumption, or constraint for the following. The concept that determines when expenses are recognized is called 1. 2. 3. is the process of determining the...

Q:

The going concern presumption is a fundamental idea in accounting and financial reporting that assumes a business will continue to operate and not go out of business in the foreseeable future. In...

Q:

Accounting and Its Environment | 51 NAME: SCORE: SECTION: PROFESSOR: Fill in the Blanks 1. Accounting is a process of recording, analyzing, and reporting of financial information to the stakeholders...

Q:

11. The ASC conceptual framework specifically mentions two underlying assumption. These are: (a) accrual and going concern (c) going concern and time period (b) accrual and accounting entity (d) time...

Q:

The following statements describe supply and demand conditions in the markets for cheese and wine, respectively. The demand for cheese is given by Qcd = 30 - Pc - Pw, where Qcd is the quantity of...

Q:

On the first day of its fiscal year, Lessor, Inc., leased certain property at an annual rental of $100,000 receivable at the beginning of each year for 10 years. The first payment was received...

Q:

ABC problem \ table [ [ Revenue , $ 1 1 1 , 1 2 2 . 8 5

Q:

6.7 Estimate service costs in a job costing environment.

Q:

All future costs are irrelevant. Do you agree? Why or why not?

Q:

What is an opportunity cost? Are these costs always able to be quantified?

Q:

Explain why sunk costs are irrelevant.

Q:

Which of the following statements is false? a.Recipients of the Nobel Peace Prize must include the prize in gross income. b. Under the terms of a divorce decree, Harold transferred his one-half...

Q:

An investment offers a nominal rate of 7 percent. Would the annual effective rate be higher if interest is compounded daily or monthly? Explain, using illustrative calculations to support your answer.

Q:

1 point ) On January 13, 2019, Jason, a cash basis taxpayer, was one of 3 winners of a $6 billion Powerball jackpot. Jason had the option to receive a one-time cash payment of $327.8 million or 30...