1
Question
Which concept is not related to identification, measurement and recording of financial transactions __________________.
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Solution
The correct option is C Going concern concept
These are the fundamental concepts of accounting.
The concept of business entity assumes that business has a distinct and
separate entity from its owners. It means that for the purposes of accounting,
the business and its owners are to be treated as two separate entities.
The concept of money measurement states that only those transactions and
happenings in an organisation which can be expressed in terms of money, are to
be recorded in the book of accounts.
The cost concept requires that all assets are recorded in the book of accounts
at their purchase price, which includes cost of acquisition, transportation,
installation and making the asset ready to use.
However, The concept of going concern assumes that a business firm would continue to
carry out its operations indefinitely, i.e. for a fairly long period of time and
would not be liquidated in the foreseeable future.
These are the fundamental concepts of accounting.
The concept of business entity assumes that business has a distinct and
separate entity from its owners. It means that for the purposes of accounting,
the business and its owners are to be treated as two separate entities.
The concept of money measurement states that only those transactions and
happenings in an organisation which can be expressed in terms of money, are to
be recorded in the book of accounts.
The cost concept requires that all assets are recorded in the book of accounts
at their purchase price, which includes cost of acquisition, transportation,
installation and making the asset ready to use.
However, The concept of going concern assumes that a business firm would continue to carry out its operations indefinitely, i.e. for a fairly long period of time and would not be liquidated in the foreseeable future.
However, The concept of going concern assumes that a business firm would continue to carry out its operations indefinitely, i.e. for a fairly long period of time and would not be liquidated in the foreseeable future.
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