The assumption that a business will continue to operate into the future is the:
A)Monetary unit assumption.
B)Periodicity assumption.
C)Economic entity assumption.
D)Going concern assumption.

Question

Quizplus · Accepted Answer

The going concern assumption states that a business will continue to operate into the future, allowing for financial statements to be prepared as though the business will continue indefinitely. This is important for financial reporting and decision-making.

The Assumption That a Business Will Continue to Operate into the Future