Under the going concern assumption, reporting assets, such as land, at their cost may be more appropriate than reporting land at its current value.

Question

Quizplus · Accepted Answer

The going concern assumption implies that a business will continue to operate indefinitely, justifying the use of historical cost for assets like land, as it reflects the cost at the time of acquisition rather than fluctuating market values.

Under the Going Concern Assumption, Reporting Assets, Such as Land