going concern assumption

Examples of going concern assumption in the following topics:

• Conclusion

  • The most important aspect of transformative learning theory is that one has to establish and clarify the learners' prior assumptions.
  • Once this is done, strategies can be developed to help transform these assumptions.
  • When learners go into critical reflection they have sufficient evidence to accept the validity of the new concept and to change their meaning perspectives or schemes.
  • Through this developmental process, they become able to free themselves from their previous assumptions and become critical thinkers as well as autonomous learners.

• Checking model assumptions using graphs

  • Simple and effective plots can be used to check each of these assumptions.
  • While the plot exhibits some minor irregularities, there are no outliers that might be cause for concern.
  • If the diagnostics support the model assumptions, this would improve credibility in the findings.
  • While there is a little leeway in model assumptions, don't go too far.
  • Comparing the absolute value of the residuals against the fitted values is helpful in identifying deviations from the constant variance assumption.

• Clearing the Market at Equilibrium Price and Quantity

  • A market clearing, by definition, is the economic assumption that the quantity supplied will consistently align with the quantity demanded.
  • This definition requires a variety of assumptions which simplify the complexities of real markets to coincide with a more theoretical framework, most centrally the assumptions of perfect competition and Say's Law:
  • This opportunity cost creates the assumption that money will not go unused.
  • Combining these two assumptions, in a perfectly competitive market the amount of a product or service that is supplied at a given price will equate to the amount demanded, clearing the market of all goods/services at a given equilibrium point.
  • The importance of raising these concerns is the understanding that while the concept of market clearing, equilibrium and supply/demand charts are highly useful in understanding the basic functioning of markets, reality does not always conform with these models.

• The Role of the Model

  • A statistical model is a set of assumptions concerning the generation of the observed data and similar data.
  • Any statistical inference requires assumptions.
  • A statistical model is a set of assumptions concerning the generation of the observed data and similar data.
  • Whatever level of assumption is made, correctly calibrated inference in general requires these assumptions to be correct (i.e., that the data-generating mechanisms have been correctly specified).
  • More complex semi- and fully parametric assumptions are also cause for concern.

• Homogeneity and Heterogeneity

  • This new data set can also be used to construct a histogram, which can subsequently be used to assess the assumption that the residuals are normally distributed.
  • The assumption of homoscedasticity simplifies mathematical and computational treatment; however, serious violations in homoscedasticity may result in overestimating the goodness of fit.
  • In regression analysis, one assumption of the fitted model (to ensure that the least-squares estimators are each a best linear unbiased estimator of the respective population parameters) is that the standard deviations of the error terms are constant and do not depend on the $x$-value.
  • When a scatter plot is heteroscedastic, the prediction errors differ as we go along the regression line.
  • The possible existence of heteroscedasticity is a major concern in the application of regression analysis, including the analysis of variance, because the presence of heteroscedasticity can invalidate statistical tests of significance that assume that the modelling errors are uncorrelated and normally distributed and that their variances do not vary with the effects being modelled.

• New Slants on Old Adages

  • Others come to mind when things are going well or when we're taking a broad look at our state of affairs.
  • Your assumptions are your windows on the world.
  • In fact, they tend to become unspoken assumptions.
  • Maxwell quotes John Maynard Keynes, for instance, concerning innovation.
  • I wouldn't expect people to jettison their creative drive, their positive thoughts, or their concern for monitoring expenses.

• Introduction to GAAP

  • Going Concern: assumes that the business will be in operation indefinitely.
  • In cases when liquidation is certain, this assumption is not applicable.
  • Monetary Unit Principle: assumes a stable currency is going to be the unit of record.
  • Differentiate between GAAP constraints, assumptions and principles, and the role they play in the preparation of financial statements

• Reporting of Financial Statement Analysis

  • To achieve these basic objectives and implement fundamental qualities, GAAP has four basic assumptions, four basic principles, and four basic constraints.
  • Going Concern: assumes that the business will be in operation indefinitely.
  • Only when liquidation is certain is this assumption not applicable.
  • Monetary Unit principle: assumes a stable currency is going to be the unit of record.

• Scenario breakdown of the Mezirow phases of transformation

  • This kind of method can be used to identify the sources of their assumptions.
  • Identifying the assumptions is one of the primary steps of transformative learning.
  • In the scenario the instructor gave the questionnaire to the trainees so that they could go through the process of self-examination.
  • A learner must become aware of their assumptions and make them explicit.
  • The questionnaire the instructor gave allowed the trainees to assess and clarify their assumptions.

• When Consensus Cannot Be Reached, Vote

  • Sometimes his concern is legitimate, for example that an important choice was left off or not described accurately.
  • But other times a developer may be merely trying to stave off the inevitable, perhaps knowing that the vote probably won't go his way.
  • Remember to specify the voting system, as there are many different kinds, and people might make wrong assumptions about which procedure is being used.