The principle that financial statements are prepared on the basis that the business will continue in operation is:
A) Historic cost
B) Going concern
C) Conservatism
D) Consistency

Question

Quizplus · Accepted Answer

The going concern principle assumes that a business will continue to operate indefinitely, and its financial statements are prepared with this assumption in mind, reflecting the entity's ability to continue its operations for the foreseeable future.

The Principle That Financial Statements Are Prepared on the Basis