The valuation of a promise to receive cash in the future at present value on the financial statements of a business entity is valid by virtue of which accounting postulate or principle?

Entity

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Materiality

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Matching

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Going concern

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Solution

The correct option is C Going concern
Going concern concept states that the operations of the business will not close in near future and business was continue. The valuation of a promise to receive cash in the future at present value on the financial statements of a business entity is valid by Going concern.

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