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:

Consolidated Statement

A financial statement that presents the assets, liabilities, and operating results of a parent company and its subsidiaries as one entity.

Shareholders' Equity

The portion of a company's assets that belongs to the shareholders after debts and liabilities have been settled.

ASPE Reporting Requirements

Refers to the standards and guidelines for financial reporting under the Accounting Standards for Private Enterprises in Canada, which cover financial statement preparation and presentation for private companies.

NCI

Stands for Non-Controlling Interest, which is a portion of the equity in a subsidiary not owned by the parent company, reflecting minority shareholders' interest in the subsidiary's net assets and income.