The going concern assumption does not influence the classification of assets and liabilities.

Name: The going concern assumption does not influence the classification of assets and liabilities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The going concern assumption, which assumes that a business will continue to operate indefinitely, significantly influences the classification of assets and liabilities on the balance sheet, particularly regarding their current (short-term) or non-current (long-term) classification.

The Going Concern Assumption Does Not Influence the Classification of Assets