Which of the following statements about the going concern assumption is not true?

A) it can justify the use of historical costs when measuring non-current assets.
B) it supports the use of assets such as Prepaid Expenses.
C) it supports the systematic allocation of depreciation over an asset's useful life.
D) it is used when an entity goes into liquidation.

Going Concern Assumption

The assumption that the entity will continue to operate for the foreseeable future.

Historical Costs

The original monetary value at which an asset was bought or a liability was incurred.

Liquidation

The process of closing a business, selling its assets, and using the proceeds to pay creditors, with any leftovers distributed to shareholders.