Which of the following assumptions implies that a business can continue to remain in operation into the foreseeable future?

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The continuity assumption, also known as the going concern assumption, assumes that a business will continue to operate into the foreseeable future. This assumption is important for financial reporting because it allows for assets and liabilities to be valued and reported based on the assumption that the business will continue to exist. Without this assumption, a business may have to adjust asset values to liquidation values, which can have a significant impact on financial statements. The other options, historical cost principle, stable monetary unit assumption, and separate-entity assumption do not necessarily imply that a business will continue to operate.

Which of the Following Assumptions Implies That a Business Can