Accounting · Accounting Concepts and Errors

Which of the following statements regarding accounting concepts, errors, and revenue recognition are correct? A. The Going Concern concept justifies the valuation of assets at historical cost rather than liquidation value, assuming the business will continue to operate indefinitely. B. A partial error of omission, where only one side of a transaction is recorded in the ledger, will cause the Trial Balance to disagree. C. According to AS 9, revenue from the sale of goods is recognized when the seller transfers significant risks and rewards of ownership to the buyer. D. A compensating error occurs when a capital expenditure, such as the purchase of a machine, is incorrectly debited to a revenue expense account like repairs. Choose the most appropriate answer from the options given below: