The going concern assumption is made when it is believed that
A) a company will become insolvent within the next accounting period.
B) the board of directors does not believe the company's financial statements are fairly presented.
C) a company will remain in business for the foreseeable future.
D) a company is a separate legal entity.

Question

Quizplus · Accepted Answer

The going concern assumption is based on the belief that a company will continue to operate for the foreseeable future, which is crucial for financial statement preparation. Options A, B and D are not related to the going concern assumption.

The Going Concern Assumption Is Made When It Is Believed