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Question
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Options
Business Entity Concept
Dual Aspect
Going Concern Concept
Money Measurement Concept
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Solution
According to the Going Concern Concept Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explanation:
According to the going concern notion, it is believed that the company will continue to operate indefinitely, and this belief is also reflected in the way that transactions are documented.
RELATED QUESTIONS
Explain the Money Measurement Concept.
Explain the need for GAAP for accounting.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
According to Business Entity Concept:
What is meant by going concern concept of Accounting.
Explain Matching Concept of GAAP.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the money measurement principle of accounting.
Name any four concepts of GAAP.
