A fundamental accounting principle assuming that an entity will continue operating for the foreseeable future (typically at least 12 months) without the threat of liquidation or significant financial difficulties. This assumption influences how assets and liabilities are valued in financial statements, allowing for the use of historical cost rather than liquidation value. When this assumption is in doubt due to financial distress, management must disclose substantial uncertainties and auditors must evaluate the entity’s ability to continue operations.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
