A company uses the going concern convention when it is in a near-bankrupt situation.

Name: A company uses the going concern convention when it is in a near-bankrupt situation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The going concern convention assumes that a company will continue to operate for the foreseeable future. If a company is in a near-bankrupt situation, it may not be able to continue operating as a going concern. In this case, the company would need to adjust its financial statements and disclosures accordingly.

A Company Uses the Going Concern Convention When It Is