Question

Which accounting concept satisfy the valuation criteria _______ a) Going concern, Realisation, Cost b) Going concern, Cost, Dual aspect c) Cost, Dual aspect, Conservatism d) Realisation, Conservatism, Going conce

Answer 1

The concept is a) Going concern, Realisation, Cost

• A going concern is for a business that has the financial funding to keep functioning continuously unless it can show otherwise.
• This also refers to a firm's capacity to generate sufficient revenue to keep solvent or avoid bankruptcy.
• The income is recognised and defined at this stage in which it is generated, according to the realisation concept.
• Thus, both the concepts help in overall valuation.