Which accounting principle mandates that a business will continue its operations indefinitely?
A. Accounting Period Concept
B. Going Concern Concept
C. Dual Aspect Concept
D. Business Entity Concept
Answer: Option B
Solution (By JKSSB Mock Tests)
The Going Concern Concept assumes the enterprise has neither the intention nor the need to liquidate or curtail materially the scale of its operations.
Explanation:
The collection increases the Pass Book balance. To reach the un-updated Cash Book balance, this amount must be deducted from the Pass Book.
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