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Questions
"Firms live forever." Explain with reference to the concept of accounting.
"Firms live for always" (with reference to the concept of accounting). Comment
Short/Brief Note
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Solution
Accounts of a firm are prepared on the assumption that the firm will exist forever. It is known as the 'going concern' concept of accounting.
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Generally Accepted Accounting Principles (GAAP)
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Every transaction is recorded in at least three accounts.
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Write short note on the going concern concept.
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