If a business is not being sold or closed, the amounts reported in the accounts for assets used in operations are based on costs. This practice is justified by the
A) historical cost principle
B) going concern principle
C) revenue recognition principle
D) business entity principle
E) currency principle

Question

Quizplus · Accepted Answer

The going concern principle assumes that a business will continue to operate indefinitely, justifying the use of historical costs for assets rather than liquidation values.

If a Business Is Not Being Sold or Closed, the Amounts