The ________ assumption assumes that the organization will continue operating normally for the foreseeable future.

Question

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The going-concern assumption assumes that the organization will continue operating normally for the foreseeable future. This means that assets and liabilities are recorded on the basis that the organization will be able to realize its assets and settle its liabilities in the normal course of business. This assumption is vital for the preparation of financial statements, as it enables users to evaluate the financial position and performance of the organization.

The ________ Assumption Assumes That the Organization Will Continue Operating