O-LevelAccountingAccounting principles and policies7707/11 · May/June 2015 · Q291 Mark
What is the going concern principle?
AAccounting records are prepared assuming that the business will continue to operate in the foreseeable future.
BIncome and expense should be accounted for in the same way they were accounted for in previous periods.
CProfit should not be anticipated and losses written off as soon as they are known.
DRevenue and costs should be recognised as they are earned or incurred, not when the money is received or paid.
✓ Correct answer
A: Accounting records are prepared assuming that the business will continue to operate in the foreseeable future.
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