The assumption that a business enterprise will not be sold or liquidated in the near future is known as the:
A)entity concept.
B)unit-of-measure assumption.
C)going-concern assumption.
D)periodic-reporting assumption.

Question

Quizplus · Accepted Answer

The going-concern assumption assumes that a business enterprise will continue to operate in the foreseeable future, and therefore will not be sold or liquidated in the near term. This assumption underlies many accounting conventions and practices, including the valuation of assets at cost and the calculation of depreciation and amortization expense over time.

The Assumption That a Business Enterprise Will Not Be Sold