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Class : 11
Unit : Account


Write about the going concern concept.

Ans : Accounting to this concept a business is considered as a going concern. It means the business is will continue to operate for a long Period of time. The transactions of the business, therefore are also recorded on the assumption it is a continuing enterprise. Assuming this concept the business firm classifies the transactions into cash and credit. The purchase and sale of fixed assets are also differentiated from the purchase and sale of trading goods. The classification of capital and revenue items, concepts of outstanding expenses, prepaid expenses, accrued income etc. are the examples of going concern concept.
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