The going concern assumption:

Multiple Choice

• Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

• Means that we can express transactions and events in monetary, or money, units.

• Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.

• Means that a business is accounted for separately from other business entities, including its owners.

• Prescribes that a company record the expenses it incurred to generate the revenue reported.