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    Question

    Which accounting concept assumes that a business will

    continue to operate for the foreseeable future?
    A Going Concern Concept Correct Answer Incorrect Answer
    B Consistency Concept Correct Answer Incorrect Answer
    C Accrual Concept Correct Answer Incorrect Answer
    D Materiality Concept Correct Answer Incorrect Answer

    Solution

    The Going Concern Concept assumes that the enterprise has neither the intention nor the necessity of liquidation or of curtailing materially the scale of its operations. This allows for the deferral of expenses, depreciation of assets, etc.

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