The assumption assumes that the organization will continue operating normally for the foreseeable future.
A) entity
B) cost
C) stable monetary unit
D) going-concern

Question

Quizplus · Accepted Answer

The going-concern assumption assumes that the organization will continue operating normally for the foreseeable future. This assumption is important in accounting because it allows businesses to prepare financial statements as if they will continue operating and not liquidate, which affects how assets and liabilities are valued on the balance sheet.

The Assumption Assumes That the Organization Will Continue Operating Normally