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9RQ.

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Horngren'S Financial And Managerial Accounting
Found in: Page 32

Short Answer

What does the going concern assumption mean for a business?

Going concern assumption assumes that business will continue to operate for the foreseeable future.

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Step by Step Solution

Explanation on going concern assumption

As per Going concern assumption, the business is assumed to be functional in operation to utilize current resources of the business as it was intended at the beginning.

Deferrment of expenses

As it is assumed that business will continue to operate in future, accountants defer the expenses for the future.

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