How is going concern assumption and accounting period
convention related?

Answers were Sorted based on User's Feedback



How is going concern assumption and accounting period convention related?..

Answer / h.r. sreepada bhagi

Going Concern Concept signifies that the business entity
will remain existence for an unknown future or it's
perennial existence. However it's not possible to ensure
continued existence of a business entity with out
ascertaining the performance result & Assets-Liabilities
status periodically. In order to supplement & strengthen
going concern concept, Accounting period Concept is
relevant. This concept requires closure of Accounts at the
end of each successive accounting period (usually a year
containing 12 months).

This way both the accounting concepts are relevant & related.

Is This Answer Correct ?    1 Yes 0 No

How is going concern assumption and accounting period convention related?..

Answer / ravindra

Going concern concept says that the firm is not going to
close with in a short span of time.

Accounting concept means all the concepts of accountancy has
it's own significance
1. business entity concept - business and owner are seperate
2. money measurment concept- which deals with money

Is This Answer Correct ?    0 Yes 1 No

Post New Answer

More Accounting General Interview Questions

hi my name is nagesh,am working in constructions company i have one dout tally software purchase it is asset or expenditure.pls reply ASAP.

2 Answers   Mico,


Tell me why do you apply for a job of an account executive?

0 Answers  


If We Purchase Service Of Bl Fees; Is It Necessary To Make Entry As XYZ Co A/c. Dr To BL Fees A/c. Or Just To Make Entry As XYZ Co A/c. Dr To Purchase A/c. Is It The Wrong In Audit Or Any Gen Check Of Entries.

2 Answers  


Do you know any other accounting application?

0 Answers  


what is differenct between capital expenditure and revenue expenditure?

5 Answers  






How to make a entry in tally for Land & Building Purchased for RS.1,65,00,000/-(Total Consideration)Paid Installment wise as 30 lakh,10 lakh,20 lakh & 1,30,87,500

2 Answers   Consortexe,


What is cotangent Account?

0 Answers  


What is trade finance

3 Answers   Barclays, IBM, Manufacturing,


What are a debit note and credit note with an example?

0 Answers  


Payment made to creditors is a

1 Answers  


Rent paid out of your personal cash 3000 SAR

9 Answers  


WHAT IS THE DIFF BETWEEN REVENUE AND INCOME??

3 Answers  


Categories