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प्रश्न
This concept assumes that the business will continue to exist for a long time in the future.
पर्याय
Money measurement concept
Going concern concept
Business entity concept
Realisation concept
उत्तर
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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संबंधित प्रश्न
What does GAAP stand for in Accounting?
Define the term GAAP.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
This principle suggests that every debit has a corresponding and equal credit.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
According to Business Entity Concept:
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
Explain the revenue principle.
Name any four concepts of GAAP.
