The continuity assumption holds that the entity will continue in business for the foreseeable future but it does not mean that it will be a going concern forever.

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The continuity assumption holds that the entity will continue in business for the foreseeable future, which means that the business will continue operating and generating revenue for at least the next year or more. However, it does not guarantee that the entity will be a going concern indefinitely, as this depends on the company's financial performance, market conditions, and other factors that may impact its sustainability over time.

The Continuity Assumption Holds That the Entity Will Continue in Business