Question

the rule that requires financial statements to assume that the business will continue operating instead of being closed or sold is the: multiple choice going-concern assumption. business entity assumption. objectivity principle. measurement (cost) principle. monetary unit assumption.

Explanation:

The going - concern assumption in accounting (a sub - field of Business, specifically related to finance and account) states that a business is assumed to continue its operations in the foreseeable future, rather than being closed or sold. The business entity assumption is about separating the business from its owners. The objectivity principle is about using objective evidence for accounting. The measurement (cost) principle is about recording assets at cost. The monetary unit assumption is about using a monetary unit to measure transactions. So the correct option is the going - concern assumption.

Answer:

A. Going - concern assumption.