Question

The ____________ assumption assumes that in the absence of information to the contrary, it is anticipated that a business will operate indefinitely.

Answer 1

Answer:

The going concern assumption

Explanation:

The going concern assumption assumes that in the absence of information to the contrary, it is anticipated that a business will operate indefinitely. The going concern assumption implies that an entity will continue being in business indefinitely. The going concern assumption is necessary for accountants to determine if a company or business will be in business long enough to meet its obligations and targets.