Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 11 - No. 42)
Which of the following describes the accounting concept of 'going concern'?
The business will continue to operate in the foreseeable future.
The business will be sold at a specific date.
The business will liquidate its assets.
The business must always increase its profit.
Explanation
The going concern concept assumes that a business will continue to operate for the foreseeable future.
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