Under the going concern assumption,assets are valued on the basis that they will continue to be used for the purpose of conducting a business.

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Under the going concern assumption, assets are assumed to have a long-term value and are therefore valued on the basis that they will be used for the purpose of conducting a business into the foreseeable future. This assumption is important for financial reporting as it provides a consistent basis for the valuation of assets and liabilities, and enables investors and creditors to make informed decisions about the financial health and prospects of a company.

Under the Going Concern Assumption,assets Are Valued on the Basis