The accounting principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

Question

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The going concern principle dictates that financial statements should be prepared with the assumption that the business will continue to operate for the foreseeable future. This principle is important in presenting an accurate picture of the financial health of the business and is based on the belief that most businesses will continue to operate indefinitely unless there is compelling evidence to the contrary.

The Accounting Principle That Requires Financial Statements to Reflect the Assumption