Question 3 of 23beginner🧠 RememberMCQ1 mark

A concept that a business enterprise will not be sold or liquidated in the near future is known as:

Exercise: Test Your Understanding - I | Q: 3 | (Page 6)
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Explanation

The correct option is (A) Going concern. The going concern concept assumes that a business firm would continue to carry out its operations indefinitely (for a fairly long period of time) and would not be liquidated in the near future. This is an important assumption because it provides the very basis for showing the value of assets in the balance sheet.