Going concern concept: The going concern concept is one

The going concern concept is one of the most fundamental principles in accounting, shaping how financial statements are prepared and interpreted. It assumes that a business will continue its operations for the foreseeable future, allowing it to meet its obligations, fulfill its objectives, and maintain its assets without the need for liquidation. This concept provides stability and long-term perspective to financial reporting. In this article, we explore the meaning, applications, and ... 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. The going concern concept or going concern assumption states that businesses should be treated as if they will continue to operate indefinitely or at least long enough to accomplish their objectives. The Going Concern concept is a fundamental accounting principle that assumes a business will continue its operations for the foreseeable future. It indicates that the company does not intend or need to liquidate or significantly downsize its operations.