WAEC Financial Accounting 2006 Question 28

Question 28

Accounting Concepts and Conventions

"A business unit is assumed to operate into foreseeable future and earn reasonable net income". This statement is emphasized by the concept of

  1. A.business entity
  2. B.going concern
  3. C.realization
  4. D.accrual.
Show the answer and explanation

Answer: B (going concern)

Explanation

That is the going concern concept.