going concern


For anyone who has been or is planning to go into the accounting industry, the going concern principle is not new. It is extremely common and floats around a lot. However, despite knowing about this term, a majority of people are still unaware of what it actually is. Like, knowing it is one thing and understanding its significance is another. We all know that it’s about a business depicting that its accounts will remain to be good in the foreseeable future. But, let’s dig a little deeper into understanding the going concern principle. What is the Going Concern Principle? People in accountancy can verify when I say that the going concern principle is the opposite of bankruptcy. Organizations use this accountancy term to signify that they have the essential resources to continue its operations in the foreseeable future. It signifies that the company is performing well and has the ability…