The assumption that a business will continue in operational existence for the foreseeable future is a description of which accounting convention?
A) Prudence
B) Going concern
C) Realisation
D) Business entity

Question

Quizplus · Accepted Answer

The going concern assumption is the assumption that a business will continue to operate in the foreseeable future. This assumption is important because it allows accountants to make estimates about the future that are necessary for financial reporting.

The Assumption That a Business Will Continue in Operational Existence