Question

Fraudulent manipulation of the going concern assumption usually results from an organization trying to conceal its terminal business situation?

1) True
2) False

Answer 1

The fraudulent manipulation of the going concern assumption is true and often occurs when an organization wants to hide its terminal business situation.

Step-by-step explanation:

The statement is true. Fraudulent manipulation of the going concern assumption often occurs when an organization is facing financial distress and wants to hide its terminal business situation. This manipulation can include falsifying financial statements or misrepresenting the organization's true financial health.