True or false. when preparing financial statements the accountant assumes that the business will continue to...

Question

Question

True or false. when preparing financial statements the accountant assumes that the business will continue to operate indefinitely

business accounting

Answer 1

Answer #1

Its True that when preparing financial statements the accountant assumes that the business will continue to operate indefinitely

Accountant uses the assumption of going concern which is the reason why Balance sheet is prepared and also the provision for the expenses are made.

Answer 2

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