The going concern assumption is inappropriate when

A) the business is just starting up.
B) liquidation appears likely.
C) fair values are higher than costs.
D) the business is organized as a proprietorship.

Going Concern Assumption

The Going Concern Assumption is an accounting principle that assumes a company will continue to operate and not go bankrupt or be liquidated in the foreseeable future.

Liquidation

The process of winding up a company's financial affairs by selling its assets to pay off its debts.