2023 · Q117
In a business firm, assets of the business are valued on the basis of their intrinsic value rather than realizable value. This accounting is based on
General Accounting Principles, Auditing and InsuranceAccounting concepts and conventions
- Amoney measurement concept
- Bmatching concept
- Cgoing concern assumption
- Dconsistency principle
Explanation
Valuing assets at intrinsic (book) value rather than break-up or realisable value assumes the business will continue operating, which is the going-concern assumption. The money measurement concept (A) is about recording in money terms, and consistency (D) about uniform methods. Hence C.