Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 30)
Which of the following statements is true regarding the 'going concern' assumption in accounting?
It assumes the company will cease operations in the near future.
It assumes the company will continue to operate for the foreseeable future.
It assumes the company's assets will be liquidated.
It only applies to companies in financial distress.
Explanation
The going concern assumption presumes the company will continue operating.
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