With respect to the going concern assumption, under Generally Accepted Accounting Principles (GAAP), a reasonable period of time is _______.
A)considered to be 90 days
B)considered to be 180 days
C)one year from the date the client issues financial statements
D)two years from the date the client issues financial statements

Question

Quizplus · Accepted Answer

Under GAAP, a reasonable period of time for the going concern assumption is one year from the date the client issues financial statements. This means that when preparing financial statements, it is generally assumed that the entity will continue to operate for at least one year after the date of the financial statements. If there is a significant doubt that the entity will be able to continue as a going concern beyond this period, appropriate disclosures must be made in the financial statements.

With Respect to the Going Concern Assumption, Under Generally Accepted