The conceptual framework's recognition and measurement concepts recognize which one of the following as an assumption?
A) Going concern.
B) Historical cost.
C) Full disclosure.
D) Realization.

Question

Quizplus · Accepted Answer

Going concern is recognized as an assumption in the conceptual framework's recognition and measurement concepts as it assumes that the entity will remain in business for the foreseeable future and will not be forced to liquidate or otherwise cease operations.

(Note: B, C, and D are also recognized in the conceptual framework's recognition and measurement concepts but they are not assumptions. Historical cost is a measurement basis, full disclosure is a principle, and realization is a recognition principle.)

The Conceptual Framework's Recognition and Measurement Concepts Recognize Which One