If a company has gone bankrupt,its financial statements likely violate the:
A)Periodicity assumption.
B)Monetary unit assumption.
C)Going concern assumption.

Question

Quizplus · Accepted Answer

The going concern assumption assumes that the company will continue to operate in the foreseeable future, which includes being able to pay off its debts. If a company has gone bankrupt, it can no longer be assumed to be a going concern, meaning that its financial statements would violate this assumption.

If a Company Has Gone Bankrupt,its Financial Statements Likely Violate