The correct answer is option C) Going concern.

Explanation:
The fundamental accounting assumption of going concern is one of the basic principles in accounting that provides the foundation for preparing financial statements. It assumes that a business will continue to operate for the foreseeable future and will not be liquidated or forced to cease operations.

This assumption is essential because it allows accountants to prepare financial statements under the assumption that the business will continue its operations. It assumes that the company's assets will continue to be used in the normal course of business and that the company will be able to meet its obligations as they become due.

The going concern assumption affects various aspects of accounting, including the valuation of assets and liabilities, depreciation of fixed assets, and the presentation of financial statements.

Why is the going concern assumption important?

1. Valuation of assets and liabilities:
Under the going concern assumption, assets are valued at their historical cost or fair value, whichever is lower. This assumes that the assets will continue to be used in the business and generate economic benefits. Liabilities are recorded at their present value or the amount expected to be settled in the normal course of business. This valuation approach is based on the assumption that the business will continue its operations.

2. Depreciation of fixed assets:
Under the going concern assumption, fixed assets are depreciated over their useful lives. This assumes that the assets will continue to be used in the business and generate revenue over their useful lives. Depreciation expense is recognized in the income statement to allocate the cost of the asset over its useful life.

3. Presentation of financial statements:
The going concern assumption has an impact on the presentation of financial statements. The balance sheet assumes that the business will continue its operations and presents assets and liabilities as current and non-current based on their expected realization or settlement within the normal operating cycle. The income statement assumes that the business will continue to generate revenue and presents the results of operations for a specific period.

In conclusion, the going concern assumption is a fundamental accounting assumption that allows accountants to prepare financial statements based on the assumption that the business will continue its operations. It affects various aspects of accounting, including the valuation of assets and liabilities, depreciation of fixed assets, and the presentation of financial statements.