If Going Concern Concept is no longer valid, which of the following is true?
  • a)
    All prepaid assets would be completely written off immediately 
  • b)
    The allowance for uncollectable accounts would be eliminated 
  • c)
    Intangible assets would continue to be carried at net amortized historical cost 
  • d)
    Land held as an investment would be valued at its realizable value 
Correct answer is option 'D'. Can you explain this answer?

CA Foundation Question

Nitin Mishra answered Jul 17, 2018
As per the going concern concept it is assumed that the enterprise has neither the intention nor the need to liquidate or curtail materiality the scale of its operations. If any such intention or need exists, the financial statements may have to be prepared on a different basis. It requires the assets to be brought down to their valuable values. Therefore, if going concern concept is lost " Land held as investment would be valued at its realizable value."

This discussion on If Going Concern Concept is no longer valid, which of the following is true?a)All prepaid assets would be completely written off immediatelyb)The allowance for uncollectable accounts would be eliminatedc)Intangible assets would continue to be carried at net amortized historical costd)Land held as an investment would be valued at its realizable valueCorrect answer is option 'D'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of If Going Concern Concept is no longer valid, which of the following is true?a)All prepaid assets would be completely written off immediatelyb)The allowance for uncollectable accounts would be eliminatedc)Intangible assets would continue to be carried at net amortized historical costd)Land held as an investment would be valued at its realizable valueCorrect answer is option 'D'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like If Going Concern Concept is no longer valid, which of the following is true?a)All prepaid assets would be completely written off immediatelyb)The allowance for uncollectable accounts would be eliminatedc)Intangible assets would continue to be carried at net amortized historical costd)Land held as an investment would be valued at its realizable valueCorrect answer is option 'D'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.