1) The going concern or continuity assumption is critical to financial accounting. The assumption

A) Is always maintained for all firms for all years

B) Supports the use of historical cost valuation for assets rather than market values

C) Means that a corporation has a definite ending date

D) Requires that we immediately expense prepaid accounts because they do not represent a future cash inflow

Why the answer is not A

MCQ- How to get these numbers

6) A company started business on January 1, year 1. At the end of year 1, the financial statement+showed the following amounts: Sales $180 Cost of goods sold Expenses Accrued wages payable Accounts receivable Accounts payable Income on the accrual basis and net cash inflow from operating activities were: Income accrual basis Cash inflow from operating activities A) $28 $22 B) $68 C) $28 $28 D) $68 $22 $62 7) The activities for the year ended December 31, 2018 included the following: 2018's net income after taxes totaled $125,000. Accounts receivable Increased $32,000 Recorded a $10,000 goodwill impairment loss during the year Inventory decreased $8,000 How much would be presented as cash flow from operations? A) $85,000 B) $111,000 C) $127,000 D) $135,000 9) Lean Ltd. had a balance of $52,300 in the office supplies account at the start of the year. During the year, purchases of $141,700 were made and debited to the office supplies account. At the end of the year, a physical count of the office supplies indicated $41,800 on hand. What was the office supplies expense for the year? A) $141,700 B) $152,200 C) $183,500 D) $194,000