Going concern in financial management, Financial Management

Assignment Help:

Going Concern in Financial Management

Going concern means in which business activities will continue for a fairly long period of time unless and until the business has entered into a procedure of liquidation.  This concept does not mean in which the business will continue for an infinite period of time, but it denotes in which the business is going to run for fairly long period of time so as to carry out business plans.

Under this concept it is assumed in which the business activities will continue for at least a period of time essential to meet its present contractual obligations and recover the original cost of its fixed assets.  This concept denotes in which the assets are obtains for utilization and not for resale. Under this concept utilization of resources for producing excellence and realization of revenue through their sale assumes significance.  Income is determined after charging cost of utilised resources to the revenue of that period.  Revenue and costs are recognized as and while they are earned or incurred and recorded in the financial statement of the period that they relate to.  This denotes that valuation of the business is completed on the basis of earning power rather than on the primary of the liquidation price of the enterprise.  This concept justifies for revenue realisation.  The revenue would be deemed to be realized along with the transfer of ownership of goods or services rendered.  Goods could be sold for cash or credit, thus earning of revenue is hard from cash collection from customers.


Related Discussions:- Going concern in financial management

Important areas of personal financial management, Gary and Joyce Yau, both ...

Gary and Joyce Yau, both 30, last month bought their dream house in London, Ontario. The purchase price was $450,000 plus addition fees such as taxes, legal fees, administration fe

Portfolio management a financial tool for a firm''net worth, I need your...

I need your assistance on how to group the relevant data so as to help me in the data analysis

Required rate of return , Required Rate of Return (R i )  The required...

Required Rate of Return (R i )  The required rate of return (Ri) is the minimum rate of return that a project must generate if it has to receive funds.  It’s thus the opportun

Define the process of wealth maximisation, Define the process of Wealth Max...

Define the process of Wealth Maximisation Shareholders' wealth can be defined as total market value of all the equity shares of company. So when we talk about maximising wealth

Share holder value maximizations , Question based on Share Holder Value Max...

Question based on Share Holder Value Maximizations ? Hatsun Agro Product limited (HAPL) over the last Five years has shown a steady growth in its sales revenue and profits. The

Describe the types of financial ratios, 1. Describe the types of financial ...

1. Describe the types of financial ratios and other financial performance measures that are used during a venture's successful life cycle. Who are the users of financial performan

Show the accountable plan, Q. Show the Accountable Plan? Accountable P...

Q. Show the Accountable Plan? Accountable Plan - An accountable plan is any reimbursement or other expense allowancearrangement of an employer which meets all of the subseque

Explain process of financial control, Financial Control: - The establishmen...

Financial Control: - The establishment as well as use of financial control devices is an important function of financial management. These devices comprise: Budgetary Contro

Classification of budgets, CLASSIFICATION OF BUDGETS Budgets can be ca...

CLASSIFICATION OF BUDGETS Budgets can be categorized on the basis of several bases.  There are three important bases for classifying budgets.  They are - functions, time, and

Event study, Event studies are one of the most powerful and widely used app...

Event studies are one of the most powerful and widely used applications of the capital asset pricing model (CAPM). An event study is an attempt to determine whether a particular ev

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd