Going concern concept is one of the basic principles of accounting that states that the accounting statements are formulated so that the company will not be bankrupt or liquidated for the foreseeable future, which generally is for 12 months. Going Concern Concept states or assumes that a business will continue to operate indefinitely, or at least until it achieves its objectives. What is Going Concern Concept Going concern concept is one of the accounting principles that states that a business entity will continue running its operations in the foreseeable future and will not be liquidated or forced to discontinue operations for any reason. In other words, a going concern is expected to have the following things working in their favour: The business is capable of running the daily operations and has capital and raw materials to do so. A business has the ability to pay ... The going concern concept of accounting implies that a business entity will continue its operations in the future and will not liquidate or be forced to discontinue operations due to any reason.
