Multiple choice

The depreciation on fixed assets should be shown in the profit & loss account every year. It is according to

  1. going concern concept

  2. dual aspect

  3. entity concept

  4. accounting period concept

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to this concept the business is assumed to exist for a number of years in the future and the depreciation on the use of fixed assets should be recorded in the profit & loss account.