Which of the following is an implication of the going concern assumption?
A)The historical cost principle is credible.
B)Amortization and amortization policies are justifiable and appropriate.
C)The current-noncurrent classification of assets and liabilities is justifiable and significant.
D)All of these.

Question

Quizplus · Accepted Answer

The going concern assumption implies that the company will continue to operate for the foreseeable future, which makes the historical cost principle credible. It also justifies the use of amortization and the classification of assets and liabilities into current and noncurrent categories. Therefore, all of the options are implications of the going concern assumption.

Which of the Following Is an Implication of the Going