Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 26 - No. 4)
Which of the following statements is true about the 'Going Concern' assumption?
It assumes the business will continue in operation.
It assumes the business will liquidate immediately.
It is not relevant to the preparation of financial statements.
It is a fundamental accounting assumption.
Explanation
The going concern assumption states that a company will continue its operations in the foreseeable future.
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