O-LevelAccountingAccounting principles and policies7707/11 · May/June 2020 · Q341 Mark
Which statement describes the going concern principle?
AAccounting methods must be used consistently from one accounting period to the next.
BIt is assumed that the business will continue to operate for the foreseeable future.
CRevenue is earned when legal title to goods passes from the seller to the buyer.
DThe business is treated as being completely separate from the owner of the business.
✓ Correct answer
B: It is assumed that the business will continue to operate for the foreseeable future.
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