The going concern assumption is concerned with
a. The company's ability to continue operations long enough to carry out its existing obligations.
b. Measuring ongoing business activities at their exchange price at the time of the initial external transaction.
c. offsetting management's natural optimism by providing a prudent approach to uncertainty in financial statement items.
d. Any information that is capable of influencing the decisions of anyone using the financial statements.
The going concern assumption is concerned with option (a): the company's ability to continue operations long enough to carry out its existing obligations. This assumption is a fundamental concept in accounting, and it assumes that a company will continue its operations for the foreseeable future. It implies that the financial statements of the company are prepared under the assumption that the company will not be forced to liquidate, terminate its operations, or seek protection from creditors in the near term.
To get to this answer, you could have read about the going concern assumption in a basic accounting textbook or online resource. The going concern assumption is one of the basic principles of financial accounting, and it is covered in the early chapters of most accounting textbooks. By understanding the basic principles and concepts of accounting, you can determine that the going concern assumption is related to a company's ability to continue its operations and fulfill its obligations.