Another Name for the Continuity Assumption Is the Going-Concern Assumption

question 99

True/False

Another name for the continuity assumption is the going-concern assumption.

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Definitions:

Current Liabilities

Financial obligations that are due within one year or within the normal business cycle.

Working Capital

The difference between a company's current assets and current liabilities, representing its ability to pay off short-term obligations.

Debt-to-Equity Ratio

A measurement indicating the relative proportions of a company's total liabilities to shareholders' equity.

Total Liabilities

The combined amount of all financial obligations a company owes to outside parties, including loans, accounts payable, mortgages, and other debts.