If a company has gone bankrupt,its financial statements likely violate the:
A)Periodicity assumption.
B)Monetary unit assumption.
C)Going concern assumption.
D)Economic entity assumption.

Question

Quizplus · Accepted Answer

The going concern assumption assumes that a company will remain in business for the foreseeable future. If a company has gone bankrupt, it means that it cannot continue to operate, which violates the going concern assumption.

If a Company Has Gone Bankrupt,its Financial Statements Likely Violate