PRC-1 · Chapter 1 · Question 61 of 100
The underlying assumption that a business entity will continue to operate indefinitely and will not be liquidated in the foreseeable future is known as the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Going concern basis
Explanation
The going concern assumption implies that an entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations in the foreseeable future.
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