Explain the going concern concept.

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Part $1$

A$.$

The going concern concept indicates that accountants are not concerned about recording transactions and preparing financial statements because the entity will continue to operate for less than one year. The going concern concept justifies the use of historical costs by the following rationale. If the business is going to exist for the short$$ term, productive assets are not for sale and as a$$ result, market values are particularly relevant.

B$.$

The going concern concept indicates that accountants will record transactions and prepare financial statements as if the entity will continue to operate for less than one year. The going concern concept justifies the use of historical costs by the following rationale. If the business is going to exist for the short$$ term, productive assets are not for sale and as a$$ result, market values are particularly relevant.

C$.$

The going concern concept indicates that accountants will record transactions and prepare financial statements as if the entity will continue to operate for an indefinite period of$$ time, unless there is evidence to the contrary. The going concern concept justifies the use of historical cost by the following rationale. If the business is going to exist for an indefinite period of$$ time, productive assets are not for sale and as a$$ result, market values are not particularly relevant.

D$.$

The going concern concept indicates that accountants will record transactions and prepare financial statements as if the entity will continue to operate for an indefinite period of$$ time, unless there is evidence to the contrary. The going concern concept justifies the use of liquidation values by the following rationale. If the business is going to exist for an indefinite period of$$ time, productive assets are not for sale and as a$$ result, market values are not relevant