Asked by elizabeth mccloskey on Jun 09, 2024
Verified
Which of the following assumptions implies that a business can continue to remain in operation into the foreseeable future?
A) Historical cost principle.
B) Monetary unit assumption.
C) Continuity assumption.
D) Separate-entity assumption.
Continuity Assumption
An accounting principle that assumes the business will continue operating indefinitely, not being forced to cease operations or liquidate.
Foreseeable Future
A time period in which an event or action is predicted or expected to occur.
- Perceive and distinguish the significant categories of financial records.
Verified Answer
FH
Faris HanisJun 14, 2024
Final Answer :
C
Explanation :
The continuity assumption assumes that a business will continue to operate in the future, allowing for consistent financial reporting and analysis.
Learning Objectives
- Perceive and distinguish the significant categories of financial records.
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