Final answer:
The correct answer is the Going concern assumption, which is a foundational accounting principle reflecting that a business is expected to continue its operations into the foreseeable future.
Step-by-step explanation:
The assumption that a business is expected to continue to operate into the future is known as the Going concern assumption. This foundational accounting principle allows for the deferral of prepaid expenses and the amortization of long-term liabilities over the periods they are expected to benefit. It is based on the belief that a company will remain in business for the foreseeable future and not liquidate its assets in the short term. This assumption is crucial for businesses when considering the long-term investments, contracts, and financial planning required to sustain operations and for making informed economic predictions.