Final answer:
The statement about the going concern principle requiring proof from accountants is false; the principle is an assumption not requiring proof unless contrary evidence exists. The long-term operation of a business relates to its continuous ability to generate profits, as lack of profitability may lead to exiting an industry.
Step-by-step explanation:
The statement that under the going concern principle, accountants must provide proof that the business will remain in operation long enough to use existing resources for their intended purpose is False. The going concern principle does assume that a business will continue to operate in the foreseeable future, and this assumption affects how financial statements are prepared. However, accountants are not required to provide proof of future business operations; rather, they should not use the going concern assumption if they have substantial evidence to the contrary.
Despite the inherent nature of enterprises to focus on the short run, businesses certainly do operate with a long-run perspective. The long-term sustainability of a business is closely tied to its ability to generate profits over an extended period. When a firm consistently fails to turn a profit, it faces the possibility of exiting the industry, leading to closure or bankruptcy. This potential outcome underscores the importance of strategic planning and adaptability for business longevity.