The assumption that a business enterprise will NOT be sold or liquidated in the near future is known as the
A) economic entity assumption.
B) monetary unit assumption.
C) fair value principle.
D) going concern assumption.

Question

Quizplus · Accepted Answer

The going concern assumption assumes that a business will continue to operate indefinitely, and is not expected to be sold or liquidated in the near future. This assumption is fundamental to financial reporting because it influences the valuation and measurement of assets and liabilities, as well as the presentation of financial statements.

The Assumption That a Business Enterprise Will NOT Be Sold