What is meant by the term going concern?
Going concern is a basic underlying assumption in accounting. The assumption is that a company or other entity will be able to continue operating for a period of time that is sufficient to carry out its commitments, obligations, objectives, and so on. In other words, the company will not have to liquidate or be forced out of business in the foreseeable future.
The going concern provides some logic for the cost principle: If a company is a going concern, it is not planning to liquidate, so why report the current value of its long term assets? However, if an asset’s value has been impaired, the asset’s carrying amount might be reduced to an amount lower than its carrying value.
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I like your style but you care not to delve into advanced accounting lecture, is like you treath peripheral accounting issues only, and limiting your horism. Please make attemts to treath advanced accounting like Advanced financial accounting: group accounts-and consolidated financial statements,Capital Reorganisations-Reflation & Reduction,Bankrupcy & Liquidations, EPS & Diluted EPS. Information Technology in Accounting ETC-Thanks …Please if you have any link to this topics link me through my mail box Philfelix2003@yahoo.com. I also need information partaining to Management Accounting like as in Decision Making under Certinty & Uncertinty. Capital rationings. Divisional performance Evaluations etc and Transfer pricing etc Thank you so much
when we a running a business it is believed that it will also be there on the coming period.e.g you can buy a car and make its depreciation for ten year, that means you believe that the coming ten years the business will still be in progress
Define and explain the relevance of the following accounting concepts:
1. Going concern
2. Accruals
3. substance over form
4. Historical cost