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    Question

    The Going Concern concept assumes that the

    business:
    A Will be liquidated in the near future Correct Answer Incorrect Answer
    B Will continue its operations for the foreseeable future Correct Answer Incorrect Answer
    C Is not affected by economic downturns Correct Answer Incorrect Answer
    D Has no intention to make profits Correct Answer Incorrect Answer
    E Is a small entity Correct Answer Incorrect Answer

    Solution

    The Going Concern concept is a fundamental accounting assumption that a business will continue to operate for the foreseeable future, without the intention or necessity of liquidation or ceasing trading. This assumption allows for the capitalization of assets and their depreciation over their useful life.

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