For each of the following situations, indicate if the going concern assumption has been violated. (Write Yes

Question:

For each of the following situations, indicate if the going concern assumption has been violated. (Write “Yes” or “No” beside each item.)

(a) ______ A company that is going to continue to operate in the foreseeable future reports all of its assets on the balance sheet at the amount expected to be collected if the assets were sold.

(b) ______ A company that is being liquidated reports current assets, non-current assets, current liabilities, and non-current liabilities on its balance sheet.

(c) ______A company that is going to operate in the foreseeable future reports its merchandise inventory at cost when the net realizable value is higher than cost.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...