The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.
A) conservatism
B) relevance
C) going concern
D) materiality

Question

Quizplus · Accepted Answer

The going concern assumption is the assumption that a company will continue to operate in the foreseeable future, which implies that it will continue to use existing resources and pay existing liabilities at maturity in an orderly manner. This assumption is fundamental to financial reporting and is necessary for the preparation of financial statements that reflect the financial position and performance of a company.

The ________ Assumption Implies That a Company Will Continue to Use