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When the going concern concept is no longer applicable, the fixed assets are recorded at...

Accounts - Principles of Accounts
JAMB 2025

When the going concern concept is no longer applicable, the fixed assets are recorded at their

  • A. realizable value
  • B. revalued amount
  • C. gross value
  • D. net book value
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Correct Answer: Option A
Explanation

The going concern concept assumes a business will keep operating indefinitely. If the business is closing, assets are recorded at their realizable value—the amount they can be sold for—not their original cost.


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