Which concept assumes that the business will continue to exist indefinitely? MCQ with Answer and Explanation

Question
Which concept assumes that the business will continue to exist indefinitely?
A. Materiality Concept
B. Accrual Concept
C. Going Concern Concept
D. Consistency Concept
Answer: Option C
Solution (By JKSSB Mock Tests)
The Going Concern concept assumes that the enterprise will continue its operations for the foreseeable future with no intention to liquidate.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The financial statement that shows the financial position of an entity at a specific date is:
A. Profit & Loss Account
B. Cash Flow Statement
C. Balance Sheet
D. Trading Account
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Correct Answer: Option C

Explanation:
Balance Sheet is a statement of assets and liabilities as on a specific date, showing financial position.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The audit of a company's accounts is conducted by:
A. Cost auditor
B. Government auditor
C. Statutory auditor appointed by shareholders
D. Internal auditor
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Correct Answer: Option C

Explanation:
Statutory audit is carried out by an independent auditor appointed by the shareholders.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Which document is prepared to inform the supplier that his account has been debited due to purchase returns?
A. Debit Note
B. Cash Memo
C. Invoice
D. Credit Note
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Correct Answer: Option A

Explanation:
A debit note is sent to the supplier indicating that their account has been debited (reduced) in our books due to returned goods.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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