What is the going concern assumption?
- A The business will be sold within twelve months
- B The business will continue operating for the foreseeable future
- C All assets are recorded at market value
- D Profits will grow every year
Answer
The business will continue operating for the foreseeable future
Going concern underpins historical cost accounting and the current versus non-current split. If it does not hold, assets must be measured on a break-up basis instead.





