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Fill in the blanks by selecting correct words given in the bracket/brackets:
(i) Going concern concept states that every business firm will continue
to carry on its activities ….. (for a definite time period, for
an indefinite time period)
(ii) Fixed assets are shown in the books at their ….. (cost price,
market price)
(iii) The concept that a business enterprise will not be closed down in the
near future is known as ….. (going concern concept, money
measurement concept)
(iv) On the basis of going concern concept, a business prepares its
. (financial statements, bank statement, cash statement)
(v) . concept states that business will not be dissolved in
near future. (Going concern, Business entity)
(i) for an indefinite time period
(ii) The answer is tricky as it depends upon the model which we are using. If we are using the Cost Model then as per IAS-16 then surely Cost Price will be booked but there are some cases where "Revaluation Model" is used (where it is feasible) and in that case regular revaluations are done and recorded accordingly.
(iii) Going Concern Concept
(iv) Financial Statements
(v) Going Concern
Best Regards
