Answered: Define the concept of going concern?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 15Q: What does the term recognize mean?

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Define the concept of going concern?

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Going concern Concept: The basic principle of this concept is that business is assumed to exist for an indefinite period and is not established with the objective of closing it down. So unless there is good evidence to the contrary, the accountant assumes that a business entity is ‘a going concern’ that will continue to operate as usual for a longer period of time.

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