Which of the following statements is correct?


The going concern concept guarantees that a business will continue in operational existence for at least twelve months after the reporting date.

To comply with the law, the legal form of a transaction must always be reflected in financial statements

If a non-current asset initially recognised at cost is revalued, the surplus must be credited in the statement of cash flows.

In times of rising prices, the use of historical cost accounting tends to understate assets and overstate profits.