The concept of going concern is used in business and it says that a business operates without the intention of liquidation in the foreseeable future, minimum one year. This concept is commonly used in accounting, because it shows the ability of the company to continue its operations. When the financial statements of the companies are prepared then on the basis of the financial results the directors access whether the company is a going concern or not. All of the companies have to mention in the notes the factors which put the companies as going concern.
This is the concept which assumes that a business entity will continue to function in the foreseeable future.It is commonly used in accounting,because it shows the ability of the company to continue its operations.
The business enterprise will continue to operate for a fairly long period of time in future