It is assumed that a business organization will continue its
operations for unlimited future periods. It will not be liquidated;
continuously performs its business. According to going concern concept, the values
of assets are shown in the B/S and the cost of an asset is not treated as
expense at the time of purchase of the asset. Therefore, the assets are for use
in the business and are not for sale; their current market values are not
particularly relevant and need not be shown.
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