The Accounting Assumption That the Business Will Continue Indefinitely into the Future

question 32

Multiple Choice

The accounting assumption that the business will continue indefinitely into the future is the ________________________ assumption.

• A) accounting period
• B) faithful representation
• C) understandability
• D) going concern

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Definitions:

Market Prices

The current price at which an asset or service can be bought or sold, determined by supply and demand in an open market.

Entrepreneurs

Individuals who start, manage, and assume the risks of a business or enterprise, often introducing innovations or exploring new market opportunities.

Costs of Production

The total expenses incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Competitive Conditions

The characteristics of a market where multiple sellers are trying to attract the same buyers, leading to benefits for consumers through lower prices and better quality.