Question

Of the five primary accounting concepts, which one assumes an indefinite future?

Answer 1

Of the five primary accounting concepts, which one assumes an indefinite future? Going concern concept. The going concern concept is one of five primary accounting concepts, the concept is a fundamental principle within account. This concept states that during and beyond the fiscal year for the copay, they will complete all plans and use assets they currently have to meet their obligations.

Answer 2

Answer: Going concern concept

Explanation: The going concern concept illustrates that every business entity has a continuity of life and so would unlikely to be dissolved in the future. It is the accounting concept that business firm will continue to carry on its activities for an indefinite period of time. As an important assumption of accounting, it provides a basis for

facilitating financial statements. It has immense significance in accounting in that it is of great help to the investors, as it assures them that they will continue to get return on their investments as well as helping judge businesses for their capacity to earn profits in future.