The concept that business is assumed to exist for an indefinite period and is not established with the objective of closing down is referred to as

Question

Quizplus · Accepted Answer

The Going Concern concept assumes that a business will continue to operate indefinitely, rather than being closed or sold. This accounting principle underlies the preparation of financial statements, suggesting that the company will continue its operations in the foreseeable future and has neither the intention nor the necessity to liquidate.

The Concept That Business Is Assumed to Exist for an Indefinite