Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 17)

What is the primary purpose of the going concern principle in accounting?

To ensure that financial statements are prepared on a consistent basis over time.

To provide a true and fair view of the financial position and performance of a business.

To assume that a business will continue to operate for the foreseeable future.

To provide a detailed record of all the financial transactions of a business.

The going concern principle assumes a business will continue operating for the foreseeable future.