Chapter: Profit Reporting
Line - "While measures of solvency might be concerned with a wind-up event, measures of profit are more likely to assume that the company is a going concern, ie it will continue to sell new business."
Ques 1: Why is Solvency measured on the assumption that company is winding up instead of going concern?
Ques 2: Why is profit not measured consistently as Solvency is measured.?
Line - "While measures of solvency might be concerned with a wind-up event, measures of profit are more likely to assume that the company is a going concern, ie it will continue to sell new business."
Ques 1: Why is Solvency measured on the assumption that company is winding up instead of going concern?
Ques 2: Why is profit not measured consistently as Solvency is measured.?