Asked by sophia dudich on Jun 25, 2024
Verified
The going concern assumption assumes that the business
A) will be liquidated in the near future.
B) will be purchased by another business.
C) is in a growth industry.
D) will remain in operation for the foreseeable future.
Going Concern Assumption
The accounting principle that a company will continue to operate indefinitely, without the intention or necessity of liquidation.
Foreseeable Future
A concept in accounting referring to the period during which a business is expected to continue its operations without significant change.
- Understand the basic assumptions underlying financial accounting, such as the going concern assumption.
Verified Answer
JB
JUSTIN BRANCHJun 27, 2024
Final Answer :
D
Explanation :
The going concern assumption is an accounting principle that assumes a company will continue to operate and fulfill its objectives in the foreseeable future, without the need to cease operations, liquidate, or significantly curtail its operational scope.
Learning Objectives
- Understand the basic assumptions underlying financial accounting, such as the going concern assumption.
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