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
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
