The assumption that a company will not be sold or liquidated in the near future is known as the
A) economic entity assumption.
B) monetary unit assumption.
C) materiality assumption.
D) none of these answers are correct.

Question

Quizplus · Accepted Answer

The assumption described is actually the "going concern assumption," which is not listed among the options provided. This assumption implies that the business will continue its operations in the foreseeable future and has no intention of liquidating or being forced to cease operations. Since none of the options A, B, or C accurately describe this assumption, the correct answer is D, "none of these answers are correct."

The Assumption That a Company Will Not Be Sold or Liquidated