The assumption that a company will not be sold or liquidated in the near future is known as the
A) economic entity assumption.
B) monetary unit assumption.
C) periodicity assumption.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The assumption described is actually the "going concern assumption," which is not listed among the options provided. The going concern assumption is the belief that a company will continue to operate for the foreseeable future, not being sold or liquidated. None of the options (A) economic entity assumption, (B) monetary unit assumption, or (C) periodicity assumption directly relate to this concept.

The Assumption That a Company Will Not Be Sold or Liquidated