The going concern assumption:
A)Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B)Means that we can express transactions and events in monetary,or money,units.
C)Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods.
D)Means that a business is accounted for separately from other business entities,including its owners.
E)Prescribes that a company record the expenses it incurred to generate the revenue reported.

Question

Quizplus · Accepted Answer

The going concern assumption assumes that the business will continue operating in the future, rather than being closed or sold off. This assumption is important because it impacts how the financial statements are prepared and presented, particularly with regard to the valuation of assets and liabilities.

The Going Concern Assumption