1.Which one of the following is a fundamental accounting concept?
Fair value concern
Going concern
None of the above
2.Financial statements are prepared on the basis of:
Going concern
Substance over form
Accrual basis
All of the above.
3.An entity is consider to be in business/ operation for indefinite period. This is called?
Substance over form
Entity concept
Going concern
4.When an entity is not able to continue in future and it does not disclose this in financial statements, it is a clear violation of:
Substance over form
Accrual basis
Prudence concept
Going concern
- Going concern assumption is required in IFRS & US GAAP?
True
False
6.Is it necessary to write in financial statement that entity is of going concern assumption:
Yes
No
7.When an entity is suffering from prolong severe liquidity problems that hinders its running of operations, it has to report this in financial statement that it is:
Going concern
Not going concern
8.When entity is not able to continue as a going concern, it has to prepare its financial statement under:
Going concern basis
Liquidation basis
Merger basis
9.By foreseeable future we mean:
Next month
Next 12 month
Next 06 months
10.who is responsible to disclose the statement that entity is not a going concern?
Auditor
Company secretary
Accountant
