Wednesday, June 10, 2015

GOING CONCERN CONCEPT

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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