The state legislature is currently debating a bill that, if passed, would require the Roberts Company to go out of business. Which of the following principles or assumptions related to the preparation of Roberts financial statements is most directly affected by this impending vote of the legislature?
A) going concern
B) verifiability principle
C) entity concept
D) materiality concept

Question

Quizplus · Accepted Answer

The "going concern" principle assumes that a business will continue to operate for the foreseeable future, which is directly affected if a bill could force the Roberts Company to go out of business.

The State Legislature Is Currently Debating a Bill That, If