Accounting for IGCSE & O level - Advanced Principles (Section 2 - No. 18)
Which of the following is true regarding the going concern concept?
It assumes the business will continue to operate for the foreseeable future.
It is concerned with the fair value of assets.
It dictates that the business owner's personal financial affairs and business finances should be recorded separately.
It states that assets and expenses should be recorded at the actual price paid.
Explanation
The going concern concept means a business is expected to continue operating for the foreseeable future.
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