Q 1.7: Which principle would a company be violating if it failed to disclose in its financial statement that it would be going out of business in the next year. A economic entity concept B principles based IFRS the going concern assumption D code of ethics Q 1.8: What is the primary purpose of the statement of cash flows? to report a company's financing transactions B to provide information about cash receipts and cash payments to present information about a company's assets and liabilities D to report how much profit was retained in the business for future growth