Under the going concern assumption:
A)an entity is viewed as continuing in business for the foreseeable future.
B)an entity is viewed as not likely to continue in operation for the foreseeable future.
C)an entity's assets and liabilities are recorded at liquidation values.
D)an entity is considered to be a separate legal entity from its owners.

Question

Quizplus · Accepted Answer

The going concern assumption assumes that the entity will continue to operate in the foreseeable future, which means it will not be liquidated or dissolved anytime soon. This assumption guides the financial reporting and presentation of the entity's financial statements.

Under the Going Concern Assumption