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