Going Concern

Going concern is an accounting principle that assumes a business will continue operating for the foreseeable future, typically at least the next year. This means the company is expected to meet its financial obligations and keep running its operations without the threat of liquidation. When a company is assessed under this principle, its financial statements reflect this stability, implying that assets can be counted at their full value and liabilities can be settled as they come due. If a business is not considered a going concern, it may indicate financial difficulties or impending closure.