Accounting Multiple Choice Question – 15 December 2020

Which of the following is the definition of a business as a going concern?

Select ONE answer:

1. The assets owned by the business exceed its liabilities.
2. The business has accumulated revenue reserves.
3. The business is currently liquid and able to pay its creditors.
4. The business will continue in operational existence for the foreseeable future.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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