Definitions for "Going Concern Assumption"
It is a basic accounting concept that presumes the company will continue to exist for the foreseeable future.
An accounting guideline which allows the readers of financial statements to assume that the company will continue on long enough to carry out its objectives and commitments. In other words, the accountants believe that the company will not liquidate in the near future. This assumption also provides some justification for accountants to follow the cost principle. To Top
An assumption of financial accounting holding that the life of an economic entity is indefinite, i.e, the entity will not be discontinued in the current period.