Question

27. Yield value is based on the assumption that
a) The company is a going concern
b) The company will be liquidated
c) The company is sick
d) None of the above​

Answer 1

Answer:

A)Company is a going concern

Answer 2

The correct option is (a) The company is a going concern.

Definition of Yield Value

• A specified amount received on an asset over a specific length of time is referred to as yield in financial terms.
• It is traditionally expressed as a percentage depending on the current market value or face value of the instrument and refers to the interest or dividend generated on debt or equity, respectively.

Concept of going concern

• When recording business transactions in the books of accounts, the Going Concern Concept assumes that the firm will be carried on for a long period to achieve its goals.

• The concept of a "going concern" does not mean that the company entity is eternal.

• The Going Concern Concept basically asserts that the company will not be liquidated or closed down in the near future.

• According to the Going Concern Concept, an entity's accounts are carried over to the next year on the assumption that the business would continue in the years ahead.

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