The assumption that a business is capable of continuing its operations long enough to meet its obligations is called the:
A)solvency assumption.
B)going-concern assumption.
C)profitability assumption.
D)liquidity assumption.

Question

Quizplus · Accepted Answer

The going-concern assumption quietly underlies accounting rules.It is the belief that any business will be capable of continuing its operations long enough to realize the economic benefits of its assets and meet its obligations in the normal course of business.

The Assumption That a Business Is Capable of Continuing Its