Financial statement are prepared with the assumption that the business will continue in the foreseeable future?

Yes, financial statements are typically prepared on a going concern basis, which means that they assume the business will continue to operate in the foreseeable future. This assumption allows for the proper presentation of the company's financial position, performance, and cash flows, and helps users of the financial statements make informed decisions about the business. If there are any uncertainties about the company's ability to continue as a going concern, this information should be disclosed in the financial statements.

Going concern

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