Financial statements are prepared on the premise that the organisation will continue operations in the foreseeable future.To which financial statement assumption does this relate?
A) Accounting entity
B) Monetary
C) Historical cost
D) Going concern

Question

Quizplus · Accepted Answer

The assumption of going concern states that an organization is assumed to continue its operation in the foreseeable future, and consequently the financial statements are prepared on this assumption. The other options (A, B, C) are not related to the assumption of going concern.

Financial Statements Are Prepared on the Premise That the Organisation