If a company is facing a bankruptcy from which it is quite doubtful that the firm may ever recover, which underlying assumption would not be valid?
A) periodicity assumption
B) economic entity concept
C) monetary unit assumption
D) going concern concept

Question

Quizplus · Accepted Answer

The going concern concept assumes that a company will continue to operate indefinitely. If a company is facing bankruptcy with little chance of recovery, this assumption is no longer valid.

If a Company Is Facing a Bankruptcy from Which It