The assumption made under the going concern concept is that the entity will continue to operate in the foreseeable future.

The major consequence of the going concern concept is that financial statements are prepared on the basis that the entity will continue to operate, which affects how assets and liabilities are valued.

Resources such as revenue, expenses, assets, and liabilities are accounted for under the accruals concept.

No, businesses do not necessarily pay for the resources at the moment of their acquisition under the accruals concept. The expenses are recognized when they are incurred, not when they are paid for.

Methods such as straight-line depreciation, reducing balance depreciation, and units of production depreciation can be used to assess the depreciation charge.

It is important to be consistent in using the accounting treatment of the item to ensure comparability and reliability of financial information.

The concept of prudence prevents companies from overstating their assets or profits by requiring them to be cautious and not to overestimate future gains.

The reason for overstatement of profits could be due to not following the prudence concept, which may lead to aggressive accounting practices or not recognizing potential losses.