Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Going concern assumption
A)Implies consensus among different observers.
B)Assumes an entity will continue to operate indefinitely.
C)Ignores the possibility of inflation.
D)Assumes all transactions can be identified with a particular entity.
E)Requires reporting the financial life of an entity in discrete time frames.

Question

Quizplus · Accepted Answer

The going concern assumption in accounting means that it is assumed an entity will continue to operate indefinitely, not going into liquidation or significantly curtailing its operational capabilities. This assumption underlies the preparation of financial statements.

Listed Below Are Five Terms Followed by a List of Phrases