The concept that a business has a reasonable expectation of remaining in business for the foreseeable future is called the:

a. economic entity assumption.

b. monetary unit assumption.

c. periodicity assumption.

d. going concern assumption


Answered 7 months ago
Answered 7 months ago
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The going concern assumption presumes that the business will be continuing its operations in the foreseeable future. It also means that the company has enough resources to run its day-to-day operations and to settle all obligations on its due date.

This concept allows companies to record deferrals and accruals assuming that they can still be realized in the future.

Thus, the answer is D.

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