Question

The going concern concept is the basis for ___________.

• A. stating fixed assets at their cost
• B. disclosing the market value of assets
• C. disclosing the sales and other operating cost in the income statement
• D. none of the above

Answer 1

The correct option is D none of the above

Going Concern Concept states that the operations of the business will continue for an infinite period of time. Going concern concept is a fundamental principle of accounting.

Due to Going Concern Concept, depreciation is being charged on the fixed assets as it will be used for many years.