BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Money Measurement Concept
|
|
|
Historical Cost Concept
|
|
|
Going Concern Concept
|
|
|
Dual Aspect Concept
|
Detailed explanation-1: -The concept of going concern assumes that a business firm would continue to carry out its operations indefinitely, i.e. for a fairly long period of time and would not be liquidated in the foreseeable future.
Detailed explanation-2: -Going concern is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future.
Detailed explanation-3: -The concept that assumes that a business would survive for an infinite time is called ‘Going concern’.
Detailed explanation-4: -2.3 GOING CONCERN CONCEPT This concept states that a business firm will continue to carry on its activities for an indefinite period of time. Simply stated, it means that every business entity has continuity of life. Thus, it will not be dissolved in the near future.
Detailed explanation-5: -Simply put, it is an assumption that the company will stay in business and that the value of its assets will endure. This underlying principle is also known as the continuing concern concept. Should a company go out of business, its assets often lose the value they once held on the balance sheet.