Which of the following statements is false?
A) The going concern assumption states that the business will continue in operation for the foreseeable future.
B) If a company is not a going concern, the classification of its assets and liabilities does not matter.
C) The going concern assumption underlies the preparation of financial statements.
D) The going concern assumption does not create a foundation for the accounting process.

Question

Quizplus · Accepted Answer

The going concern assumption is fundamental to the accounting process as it assumes that the business will continue to operate, affecting how assets and liabilities are recorded and reported.

Which of the Following Statements Is False