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Among the four accounting assumptions listed in the lesson, one specifically posits that the enterprise will continue in operation for the foreseeable future. Which assumption does that?
Answer & Solution
Correct answer: D.
1. The lesson lists four accounting assumptions.
2. The Going Concern assumption posits continuity of the enterprise for the foreseeable future.
3. Money Measurement deals with monetary unit only.
4. Business Entity separates the enterprise from its owners; Time Period assumes discrete reporting periods.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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