The belief that an entity will continue to operate, unless there is evidence to the contrary, is the
A) accounting period concept.
B) historical cost principle.
C) unit of measurement concept.
D) going concern assumption.
E) revenue recognition rule.

Question

Quizplus · Accepted Answer

The going concern assumption is the accounting principle that assumes a company will continue to operate indefinitely, unless there is evidence to suggest it will not. This assumption allows businesses to defer some of their prepaid expenses over future periods.

The Belief That an Entity Will Continue to Operate, Unless