Podcast
Questions and Answers
True or false: The Going Concern concept assumes that a business enterprise will cease to exist in the near future.
True or false: The Going Concern concept assumes that a business enterprise will cease to exist in the near future.
False
True or false: The Going Concern concept is not concerned with the continuity of a business enterprise.
True or false: The Going Concern concept is not concerned with the continuity of a business enterprise.
False
True or false: The Going Concern concept assumes that a business enterprise will continue in existence for a long period of time.
True or false: The Going Concern concept assumes that a business enterprise will continue in existence for a long period of time.
True
What is the primary assumption of the Going Concern concept?
What is the primary assumption of the Going Concern concept?
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What does the Going Concern concept assume about the life of a business enterprise?
What does the Going Concern concept assume about the life of a business enterprise?
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Why is the Going Concern concept important for financial reporting?
Why is the Going Concern concept important for financial reporting?
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Study Notes
Going Concern Concept
- The Going Concern concept assumes that a business enterprise will continue in existence for a long period of time.
- This concept is concerned with the continuity of a business enterprise.
- The primary assumption of the Going Concern concept is that a business will continue to operate for a foreseeable future.
- The Going Concern concept assumes that a business enterprise will have a long life, rather than ceasing to exist in the near future.
- This concept is important for financial reporting because it allows companies to prepare financial statements on the basis that they will remain in operation, rather than liquidating their assets.
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Description
Test your understanding of the going concern concept with this quiz. Assess your knowledge of the assumption that a business will continue to operate for an indefinite period, fulfilling its objectives and obligations.
