Classification of assets 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 illustrates the going concern concept assumption, which assumes that the business will continue to operate into the future. By classifying assets into current (those expected to be converted into cash or used within a year) and long-term (those expected to be held for more than a year), the assumption is made that the business will continue to operate beyond the current year.

Classification of Assets into Current and Long-Term Illustrates Which Assumption