What does the term "Going Concern" refer to in

Q: Answer-What does the term 'Going Concern' refer to in accounting?

The companys intention to continue operations for the foreseeable future Going Concern is an accounting principle that assumes a company will continue its operations for the foreseeable future without the intention or need to liquidate or significantly reduce its scale of operations. This assumption is crucial for the preparation of financial statements.

accounting?

A The company's ability to generate profits Correct Answer Incorrect Answer

B The company’s obligation to repay its debts Correct Answer Incorrect Answer

C The company's intention to continue operations for the foreseeable future Correct Answer Incorrect Answer

D The company's short-term liquidity position Correct Answer Incorrect Answer

E The company's compliance with accounting standards Correct Answer Incorrect Answer

Solution

The company's intention to continue operations for the foreseeable future "Going Concern" is an accounting principle that assumes a company will continue its operations for the foreseeable future without the intention or need to liquidate or significantly reduce its scale of operations. This assumption is crucial for the preparation of financial statements.

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