Going concern concept: The going concern concept is

The going concern concept is critical to financial statement analysis. Check the article below for an extensive look at this vital topic with examples. The going concern concept is a fundamental principle in accounting that assumes a business will continue to operate for the foreseeable future, without any intention or need to liquidate or significantly reduce its operations. Going Concern Concept states or assumes that a business will continue to operate indefinitely, or at least until it achieves its objectives. The going concern principle is the assumption that an entity will remain in business for the foreseeable future, which justifies the deferral of some expenses.