Thursday, April 10, 2008

Accounting Going Concern Principle

What is the Going Concern Accounting Principle ?

This accounting principle makes an assumption that a company will continue to exist long enough to carry out its stated objectives and commitments. Meaning it will not liquidate in the foreseeable future. If the company's financial situation changes so that the accountant believes the company will not be able to uphold commitments, the accountant is required to disclose this assessment when making financial statements. Here is some information on the sources of the accounting principles we know and use today

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