According to which of the following concepts, fixed assets are depreciated over their useful life rather than over a shorter period on the expectation of early liquidation?

Cost concept

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Matching concept

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Going Concern concept

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Business entity concept

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Solution

The correct option is A Going Concern concept
Going Concern Concept states that the business will not stop in near future. Therefore, fixed assets are depreciated over their useful life rather than over a shorter period on the expectation of early liquidation as per going concern concept.

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Similar questions

Which of the following accounting concepts or principles require the calculation of depreciation of the fixed assets?

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