The assumption which assumes that the entity will not be liquidated in the near future is the:
A) accounting entity.
B) reliability.
C) accrual basis.
D) going concern.

Question

Quizplus · Accepted Answer

The assumption of going concern assumes that the entity will continue to operate in the future and is not expected to liquidate in the near term. It is a key assumption in financial reporting and helps ensure that the financial statements are reliable and useful for decision-making purposes.

The Assumption Which Assumes That the Entity Will Not Be