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7 April, 2016 - 15:12

The going concern concept is based on the belief that a business will operate indefinitely. Assets purchased for long-term use,should be recorded at historical cost even if the market value is above or below the original cost. When expenses are prepaid, they should be listed as assets. In the event a business is near the end of its life, this information should be disclosed in the financial statements of a company. Accounting procedures should change to reflect the special needs of a business in liquidation.