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2010 Sept no 5

Discussion in 'CB1' started by Robert, Aug 17, 2019.

  1. Robert

    Robert Very Active Member

    2010 Sept no 5

    Which of the following accounting concepts can be used to justify carrying a non-current asset at its historical cost less depreciation even though this is not a particularly relevant figure for most decisions?

    A. accruals
    B. going concern
    C. prudence
    D. realisation
     
    Robert, Aug 17, 2019
    #1
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Hi

    I'd go for B - it's the going concern concept that justifies this treatment as the assets concerned are then unlikely to be sold in the immediate future.

    Hope this helps
    Lynn
     
    Lynn Birchall, Aug 19, 2019
    #2

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