Multiple choice

It is assumed that the business will be ongoing, i.e. the business will have an indefinite life

  1. Reporting period

  2. Comparability

  3. Going concern

  4. Consistency

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The going concern assumption assumes that a business will continue to operate indefinitely. This justifies the use of historical cost and the deferral of expenses.