Question 20 of 26
Q.The concept which assumes that a business will last indefinitely is :
(a) Periodicity
(b) Business Entity
(c) Conservatism
(d) Going Concern
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2025MCQ· 1mImportance★★★★★
77% · 20/26 Questions
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Start your 14-day free trial to unlock the full solution →The assumption that a business will continue indefinitely is the Going Concern concept, so the correct answer is option (d).
In the Tamil Nadu HSC Class-11 Accountancy syllabus:
- Going Concern concept — assumes the enterprise will continue to operate for an indefinite (foreseeable) period and has no intention of closing down. This is why fixed assets are recorded at cost and depreciated over their useful life rather than at break-up (sale) value.
- Periodicity concept — divides the indefinite life into fixed accounting periods. …
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