Going concern concept assumes __________________.

Business as a dissolving concern

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Business on relishing values

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Business as a going concern

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Asset = liability

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Solution

The correct option is B Business as a going concern
Going concern is a basic underlying assumption in accounting. The assumption is that a company or any other entity will be able to continue operating for a period of time that is sufficient to carry out its commitments, obligations, objectives, and so on.

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Similar questions

The concept that assumes that a business would survive for an infinite time is called 'Going concern'.

Why it is necessary for accountants to assume that a business entity will remain a going concern?

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