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

Question

Quizplus · Accepted Answer

The going concern assumption is the accounting principle that a company will continue to operate indefinitely and will not be forced to halt operations and liquidate its assets in the near future. This assumption allows businesses to defer the recognition of certain expenses and to amortize costs over their useful life.

The Assumption That a Business Enterprise Will Not Be Liquidated