The going concern assumption of GAAP implies that the firm: a. Is going under and needs to

Question:

The going concern assumption of GAAP implies that the firm:

a. Is going under and needs to be liquidated at historical cost.

b. Will continue to operate and its assets should be recorded at historical cost.

c. Will continue to operate and that all assets should be recorded at their cost rather than at their liquidation value.

d. Is going under and needs to be liquidated at liquidation value?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....