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A concept that a business enterprise wil...

A concept that a business enterprise will not be sold or liquidated in the near future is known as :
1) Going concern
2) Economic entity
3) Monetary unit
4) None of the above

A

Going concern

B

Economic entity

C

Monetary unit

D

None of the above

Text Solution

Verified by Experts

The correct Answer is:
Going concern
The thought of going concern assumes that a business organization would still do its operations indefinitely, i.e., for a reasonably long amount of your time and wouldn't be liquidated within the predictable future.
This is terribly important assumption of accounting because it provides the very basis for showing the worth of assets within the record.
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NCERT-THEORY BASE OF ACCOUNTING -All Questions
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  2. When information about two different enterprises have been prepared pr...

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  3. A concept that a business enterprise will not be sold or liquidated in...

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  4. The primary qualities that make accounting information useful for deci...

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  5. Why is it necessary for accountants to assume that business entity wil...

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  6. When should revenue be recognised? Are there exceptions to the general...

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  7. What is the basic accounting equation? Explain it?

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  8. Complete the following worksheet: (i) If a firm believes that some of ...

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  9. ‘The accounting concepts and accounting standards are generally referr...

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  10. Why is it important to adopt a consistent basis for the preparation of...

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  11. Discuss the concept-based on the premise ‘do not anticipate profits bu...

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  12. What is matching concept? Why should a business concern follow this co...

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  13. What is the money measurement concept? Which one factor can make it di...

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  14. ‘The accounting concepts and accounting standards are generally referr...

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  15. Why is it important to adopt a consistent basis for the preparation of...

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  16. Discuss the concept-based on the premises ‘do not anticipate profits b...

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  17. What is matching concept? Why should a business concern follow this co...

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  18. What is the money measurement concept? Which one factor can make it di...

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