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Commerce · Q147

Accounting

Graduate and Post Graduate · Commerce · question 147

Q147

The going concern concept assumes that

A.
The entity continue running for forseeable future
Answer
B.
The entity continue running until the end of accounting period
C.
The entity will close its operation in 10 years
D.
The entity can't be liquidated

Answer: Option A

Solution

Answer: Option A
Solution:
The going concern concept assumes that the entity continue running for forseeable future. The going concern principle is the assumption that an entity will remain in business for the foreseeable future.