According to Generally Accepted Accounting Principles (GAAP), to meet the "going-concern" standard an entity must be viewed as capable of staying in business for ____________ after the date of the financial statements.
A)a reasonable period of time
B)six months
C)nine months
D)two years

Question

Quizplus · Accepted Answer

According to GAAP, an entity must be viewed as capable of staying in business for a reasonable period of time after the date of the financial statements to meet the going-concern standard. The exact definition of a reasonable period of time may vary depending on the circumstances and nature of the business, but it generally refers to a period of at least twelve months. Therefore, options B, C, and D are not the correct choices.

According to Generally Accepted Accounting Principles (GAAP), to Meet the "Going-Concern