Practice Going Concern Concept (6.2.3) - Accounting Concepts - ICSE 11 Accountancy
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Going Concern Concept

Practice - Going Concern Concept

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Practice Questions

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Question 1 Easy

What does the Going Concern concept assume about a business?

💡 Hint: Think about the longevity of the business.

Question 2 Easy

How should assets be recorded according to the Going Concern concept?

💡 Hint: Consider what 'historical' means.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does the Going Concern assumption indicate?

The business will be dissolved soon
The business will operate indefinitely
The business is closing tomorrow

💡 Hint: Consider the future aspect of business operations.

Question 2

True or False: A company must disclose if it is not a going concern.

True
False

💡 Hint: Think about transparency and honesty in finance.

2 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

You evaluate a small tech startup. They have had low revenue for the past two years and are facing potential lawsuits. How would this impact your assessment of their Going Concern status?

💡 Hint: Consider the effects of external pressures on a business's future.

Challenge 2 Hard

A company has recorded a significant depreciation expense under the Going Concern assumption. Analyze how this might impact their financial statements and stakeholder perceptions.

💡 Hint: Think about how asset health connects to operational viability.

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