Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 36)
Which of the following is NOT a key feature of the going concern principle?
A business will continue to operate in the foreseeable future.
Financial statements are prepared with the assumption that the business will continue trading for the short-term.
If it is a concern to believe the business cannot continue trading, it must be disclosed in the financial statements.
Assets are valued at their liquidation value.
Wyjaśnienie
The going concern principle implies that the business will continue operating into the foreseeable future, and assets should be valued based on this assumption.