Which accounting concept assumes that a business will continue to operate for the foreseeable future?
Answer and explanation
Correct answer: D. Going concern
- Step 1: Assets are valued on the assumption that the business is not about to be wound up.
Answer
Going concern.
Why not the others: The other concepts relate to other matters.
Practise more Accounting Concepts.
Free questions with an explanation for every one, and full timed CA Foundation mock tests.
More Accounting Concepts questions
- Under the cost concept, an asset is recorded at its
- Goods taken by the proprietor for personal use are recorded by debiting
- Which of these is a capital expenditure?
- Under which concept is the business treated as separate from its owner?
- According to the dual aspect concept, every transaction has
- Which account is a nominal account?