The Going-Concern Assumption Holds That the Business Entity Will Continue

question 7

Essay

The going-concern assumption holds that the business entity will continue its operations long enough to realize its projects,commitments,and ongoing activities.The assumption is that the entity is not expected to be liquidated in the foreseeable future or that the entity will continue for an indefinite period of time.
Explain the relationship between the going-concern assumption and the historical cost principle and the amortization of assets.

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Definitions:

Zimbardo's Research

A series of studies focused on understanding human behavior, particularly known for the Stanford Prison Experiment which explored the psychological effects of perceived power.

Reliability

The consistency and dependability of a measure or tool over time, indicating its ability to produce stable and accurate results.

Legitimate Reasons

Valid, logical, or justifiable grounds for an action, belief, or decision.

Research Results

Research results are the findings obtained from systematic investigation aimed at discovering new knowledge or validating existing knowledge.