Which concept enables the accountant to carry forward the values of assets and liabilities from one accounting period to the other without asking the question about usefulness and worth of the assets and recoverability of the receivables?
Going Concern Concept
The correct answer is option 3. The Going Concern Concept assumes that a business will continue to operate for the foreseeable future, which allows the accountant to carry forward the values of assets and liabilities from one period to the next without considering their short-term usefulness or recoverability. This concept is essential for the continuity of accounting records. The other concepts are unrelated to the continuity of asset and liability valuations across periods.
Important Questions from Assets & Liabilities
The freight and insurance paid for acquiring goods or for making them saleable is ________.
Which of the following is NOT regarded as a capital expenditure?
Which of the following is NOT regarded as a revenue expenditure?
Which one of the following is a revenue expenditure?
A trade mark is an example of ______.
