The assumption that in the absence of contrary information a business entity will continue indefinitely is the:
A) Periodicity assumption.
B) Entity assumption.
C) Going concern assumption.
D) Historical cost assumption.

Question

Quizplus · Accepted Answer

The going concern assumption states that a business entity will continue to operate indefinitely, as long as there is no contrary information indicating otherwise. This assumption is important in financial accounting as it allows for the valuation of assets and liabilities under the assumption that the entity will continue to operate and the assets will be used and depreciated over time.

The Assumption That in the Absence of Contrary Information a Business