Which concept of accounting deals with the indefinite life of a business entity?
The going-concern concept assumes that a business will continue operating for the foreseeable future, without an intention or need to liquidate. The periodic concept divides…
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Which concept of accounting deals with the indefinite life of a business entity?
Answer and explanation
Correct answer D
The going-concern concept assumes that a business will continue operating for the foreseeable future, without an intention or need to liquidate. The periodic concept divides that continuing life into reporting periods, while conservatism and materiality concern other aspects of accounting.
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Rajasthan SET (RSET)