The accounting assumption that the business will continue indefinitely into the future is the ________________________ assumption.
A) accounting period
B) faithful representation
C) understandability
D) going concern

Question

Quizplus · Accepted Answer

The going concern assumption in accounting assumes that the business will continue to operate indefinitely into the future, allowing for the use of certain accounting methods and reporting that would be inappropriate if liquidation or cessation of operations were imminent. The other choices, such as accounting period, faithful representation, and understandability, deal with different concepts in accounting.

The Accounting Assumption That the Business Will Continue Indefinitely into the Future