Expressing financial data as if a business will continue operating for an indefinite period time refers to which concept?
A) Business entity concept
B) Going concern concept
C) Objectivity concept
D) Adequate disclosure concept

Question

Quizplus · Accepted Answer

The going concern concept assumes that a business will continue operating for an indefinite period of time, and therefore financial data must be presented with this assumption in mind. This concept is important for accurate financial reporting and decision-making.

Expressing Financial Data as If a Business Will Continue Operating