How Does the Going-Concern Principle Affect Reporting Asset Values of a Business

question 70

Essay

How does the going-concern principle affect reporting asset values of a business?

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Definitions:

Revenue

Income generated from normal business operations, often from the sale of goods and services to customers.

Credit Customer

A customer who purchases goods or services on credit, agreeing to pay at a later specified date.

Expense

Money spent or cost incurred in an entity's efforts to generate revenue.

Asset

Resources owned by a business or individual that have economic value or future benefit.