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Question
This concept assumes that the business will continue to exist for a long time in the future.
Options
Money measurement concept
Going concern concept
Business entity concept
Realisation concept
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Solution
Going concern concept
Explanation:
The going concern concept assumes that a business will continue to operate indefinitely and will not be forced to cease operations or liquidate its assets in the foreseeable future. This concept underlies the preparation of financial statements, allowing for the deferral of certain expenses and the recognition of revenues over multiple periods.
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