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Essay text:
Such as :
• Entity concepts
• Money measurement concepts
• Separate valuation principle
The Going Concern Assumption
The going concern assumption implies that the business will continue in operation for foreseeable future, and that there is no intention to put the company into liquidation or to make drastic cutbacks to the scale of operations.
Suppose that J&J company bought a printing machine for their printing business with the cost of $150000. And it is expected to last that machine for 15 years. And the depreciation cost is set 10000 per year.
According to going concern assumption it is assumed that the business will continue its operations and asset will live out its full 15 years in use...
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