Which statements about the going concern assumption are correct?
A) The company will not be able to continue operating in the next accounting period.
B) The auditor is responsible for the company to be able to continue operating in the foreseeable future.
C) The company will be able to continue operating in the foreseeable future.
D) none of the above

Question

Quizplus · Accepted Answer

The going concern assumption states that the company will be able to continue operating in the foreseeable future. Option A is incorrect since it goes against the assumption, and option B is partially correct as the auditor has a responsibility to assess the company's ability to continue as a going concern, but it is not solely their responsibility.

Which Statements About the Going Concern Assumption Are Correct