Going concern is the
A)legal obligation to give up things of value in the future.
B)accounting concept that implies that a business may continue in business even if it is sold to other owners.
C)difference between assets and liabilities of a business.
D)value given up to obtain something that you want.

Question

Quizplus · Accepted Answer

The going concern concept in accounting assumes that a business will continue to exist and operate in the foreseeable future. This assumption is important for financial reporting purposes as it allows for the preparation of financial statements under the assumption that the business will continue operating, without considering any plans to sell or liquidate the business. Option A refers to a legal obligation, Option C is the definition of net worth or equity, and Option D refers to the economic concept of opportunity cost.

Going Concern Is the