The Accounting Assumption That a Business Will Continue to Operate

question 42

Multiple Choice

The accounting assumption that a business will continue to operate into the foreseeable future is the:

• A)entity assumption.
• B)going concern assumption.
• C)accounting period assumption.
• D)historical cost assumption.

---

Definitions:

Economy

A system of production, distribution, and consumption of goods and services within a certain geographical area or country.

Goods Produced

Refers to the outcomes of manufacturing or production processes within an economy, encompassing both tangible products and intangible services.

Value Created

The difference between the value of an entity's outputs and the cost of inputs used, indicating the economic value added by the entity.

Capital Investment

Funds expended by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.