It is generally assumed that the business will not liquidate in the near foreseeable future because of
A)Periodicity.
B)Materiality.
C)Matching.
D)Going concern.

Question

Quizplus · Accepted Answer

The "going concern" assumption is the principle that assumes a business will continue to operate for the foreseeable future, and not liquidate or be forced to stop operations. This assumption underlies the preparation of financial statements, allowing businesses to defer some of their prepaid expenses over future periods.

It Is Generally Assumed That the Business Will Not Liquidate