Some of the implications of adopting the going concern assumption are shown in the following accounting practices, except:
A) justification of using historical cost to measure value of assets.
B) depreciation of non-current assets.
C) liquidation of an entity's operations.
D) inclusion of goodwill in the statement of financial position.

Question

Quizplus · Accepted Answer

Adopting the going concern assumption assumes that the entity will continue to operate in the foreseeable future, therefore, liquidation of an entity's operations is not consistent with this assumption. The other accounting practices listed are consistent with the going concern assumption.

Some of the Implications of Adopting the Going Concern Assumption