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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
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.
RELATED QUESTIONS
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______ is the language of business.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
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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.
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"Every transaction affects at least three accounts." Comment.
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