Commercial Applications
This concept assumes that the business will continue to exist for a long time in the future.
- Money measurement concept
- Going concern concept
- Business entity concept
- Realisation concept
GAAP
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Going concern concept
Reason — The Going Concern Concept assumes that the business will continue to exist for an indefinite period of time. There is neither the intention nor the necessity to wind up its affairs in the near future. This is why fixed assets are recorded at cost less depreciation rather than at market value.
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