The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.

Name: The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The going concern principle assumes that a business will continue to operate indefinitely, not that it will cease operations to sell its assets to pay creditors.

The Assumption That a Business Will Continue to Operate Until