What is the going concern assumption?
A)The viability of an entity to remain in business for the foreseeable future
B)The period of time required by the applicable financial reporting framework
C)The responsibility to perform any audit procedures
D)An overall conclusion on the audit drawn by auditors

Question

Quizplus · Accepted Answer

The going concern assumption is the assumption that an entity will remain in business for the foreseeable future. This means that the financial statements are prepared under the assumption that the entity will continue to operate and not be liquidated or sold. This assumption is important in determining the values of assets and liabilities on the balance sheet, as well as the expected cash flows and profitability of the entity in the future.

What Is the Going Concern Assumption