As per the going concern assumption, the entity will remain in operation for the foreseeable future. A key accounting theory known as the "going concern assumption" states that a company must be financially stable enough to continue operating through the years.
This suggests that a corporation has a lower likelihood of going out of business. In order to stay in business and avoid bankruptcy, it still uses its current assets to pay commitments. Additionally, the company can continue to make profits because it doesn't intend to or won't be required to liquidate them and is anticipated to remain in operation for at least a year.
A company's break-up value is less than its value as a continuing concern. One of the fundamental tenets of generally accepted accounting standards is this (GAAP). When potential lenders or investors look at a company's financial accounts, the going concern assumption might give them insight into the business. They may be less ready to invest in the company or lend money to it if they believe that it will fail financially or in another way during the next 12 months.
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The answer is C, The method by which the business can be dissolved
The simplest way to explain what continuity factor is it's the assumption that a business organization will always able to operate.
But in the real world, businesses went down all the time, that's why the partners have to find out the method to dissolve the business if somehow the business goes under
Answer:
E.inefficient producing divisions could pass on their inefficiencies to buying divisions in the transfer price.
Explanation:
The transfer price refers to that price in which the one firm is charging the prices from the other firm with respect to the service rendered. It is based on price charged in the market
To find out the transfer price we considered the standard cost instead of the actual cost as the divisions may be have more actual cost as compare to the standard cost which resulted into the inefficiency that impact the buying based on the transfer price
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Answer:
Product known but money lacking
Explanation:
When sales representatives try to sell a new product, they face numerous challenges dealing with the customers. However, there is not anything like that the customers do not lack money. They either do not have the appropriate knowledge of that product or do not alter their previous choices. For example, someone who uses Lux soap may not want to use Vivel.
