Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 14)
In the context of business, what does the 'going concern' assumption mean?
The business will continue to operate indefinitely.
The business will operate for a specific period.
The business is likely to continue operating for the foreseeable future.
The business is actively seeking new investments.
설명
The going concern assumption implies that the business will continue operating, for the foreseeable future, allowing for the preparation of financial statements based on the assumption that the business will realize its assets and settle its liabilities in the normal course of business.