Answer to Question #196029 in Economics for Millicent

Question

All financial statements are prepared according to the foundation laid down in the accounting concepts and principles. Which of the following explanations best describes the ‘going concern concept’?

Select one:

a. A business must present its financial statements in a way that reflects the fact that it will continue operating in future.

b. Material amounts must always be disclosed even if they happened after the reporting date

c. Revenue and expenses must be recorded in the period when the service was either rendered or received.

d. Assets must always be recorded at their original cost price

Answer 1

 Revenue and expenses must be recorded in the period when the service was either rendered or received.