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What does the going concern assumption underpin?

  1. A Measuring assets at historical cost and splitting items into current and non-current
  2. B Immediate liquidation values
  3. C Cash basis accounting
  4. D Tax computations only
Answer

Measuring assets at historical cost and splitting items into current and non-current

If going concern does not hold, assets must be measured on a break-up basis, which changes the statements fundamentally.

All CA MCQs

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