Is it possible for companies to survive without using the going concern assumption?

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robinX
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Joined: Tue May 12, 2026 11:14 am

Is it possible for companies to survive without using the going concern assumption?

Post by robinX »

If the going concern assumption were not applied, financial reporting would be much more complicated. define going concern refers to the assumption that a business will be a going concern in the future, which means it will keep operating normally. Going concern accounting is preparing financial statements on the assumption that the business will continue to exist rather than be shut down. Going concern is defined as the company being stable enough to continue to operate and pay its debts.
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