The going-concern assumption refers to ________.
A)measuring the financial statement items at their cost at the time of the transaction
B)an assumption is made that a company will continue to be in business in the future
C)the use of monetary units,such as dollars,to measure the value of financial statement amounts
D)the way revenues and expenses are recognized

Question

Quizplus · Accepted Answer

The going-concern assumption assumes that the company will continue operating in the future, which is a fundamental concept of accounting. It affects the way financial statements are prepared, as assets and liabilities are valued based on their potential future usefulness and obligations, respectively. This assumption is important for investors, creditors, and other stakeholders to make informed decisions about a company's financial health and sustainability.

The Going-Concern Assumption Refers to ________