Question

Select the most appropriate alternatives from those given below and rewrite the statements :

Concept which provides a line between present & future is known as ______.
a) Going concern
b) Cost Concept
c) Accrual Concept
d) Entity Concept

Answer 1

Concept which provides a line between present & future is known as Going Concern.

Explanation:
Going concern is the basic underlying assumption of accounting, which states that the business will continue indefinitely. The business will continue operating and will not shut down but will realise assets as well as discharge liabilities in the normal course of operations. Thus, it is a concept which provides a line between the present and the future.