The accounting rule which assumes that Team Shirts is continuing in business for an indefinite period of time is the ________.
A)separate-entity assumption
B)going-concern assumption
C)monetary-unit assumption
D)historical-cost principle

Question

Quizplus · Accepted Answer

The going-concern assumption in accounting assumes that a company will continue its operations for the foreseeable future. Therefore, all financial statements and records are prepared assuming the company will not be liquidated or cease operations in the near future. This assumption is relevant to Team Shirts because it is a new business that intends to continue operations indefinitely.

The Accounting Rule Which Assumes That Team Shirts Is Continuing