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 (B)
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 (B)
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 (A)
What is the primary assumption of the Going Concern concept?
What is the primary assumption of the Going Concern concept?
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?
Why is the Going Concern concept important for financial reporting?
Why is the Going Concern concept important for financial reporting?
Flashcards are hidden until you start studying
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
