Which concept assumes that the business enterprise will continue to operate indefinitely?

• A. Going Concern
• B. Economic Entity
• C. Monetary Unit Concept
• D. Substance over Form

Answer: (A)

Going concern is the assumption that a business will continue its operations into the foreseeable future. This belief allows financial statements to be prepared on an accrual basis and to value assets and liabilities without planning for immediate liquidation, supporting practices like depreciation of long‑term assets and the classification of debts as long‑term when repayment extends over many years. The other concepts describe different organizing principles: separating the business from its owners’ personal affairs (economic entity), using a stable currency as the unit of measure (monetary unit), and prioritizing actual economic reality over formal/legal appearance (substance over form). None of these imply indefinite continuation, which is why going concern is the best fit.