Question

Going concern concept is important for ___________.

• A. Valuation of assets and liabilities
• B. Preparation of accounting statements
• C. Decision making
• D. All of the above

Answer 1

The correct option is A Valuation of assets and liabilities

Going concern concept states that the business will continue to carry out its operations without any stoppage. Valuation of assets and liabilities are important in every business and it changes as per marketing conditions. Hence, going concern concept is important for valuation of assets and liabilities as it gives correct market value of them.