Classification of assets on the company's balance sheet into current and long-term illustrates which assumption?
A) going concern concept
B) economic entity concept
C) monetary unit assumption
D) historical cost assumption

Question

Quizplus · Accepted Answer

The classification of assets into current and long-term reflects the going concern concept, which assumes that a company will continue to operate in the foreseeable future, allowing it to distinguish between short-term and long-term assets.

Classification of Assets on the Company's Balance Sheet into Current