Going concern

Going concern is a term used to describe a business that is expected to continue operating for the foreseeable future. It means that the company is likely to stay in business and not shut down anytime soon.

Let's say you have a lemonade stand. If you have customers coming to buy lemonade and you keep getting enough money to buy more lemons and sugar, you have a going concern. You can keep selling lemonade and making money as long as people keep coming back to buy it.

Just like your lemonade stand, bigger companies like Walmart or Apple are also going concerns. They are expected to continue making profits and growing as a business for many years into the future.

When a company is not a going concern, it could mean that they are losing customers, money, or have other problems that make it unlikely for them to continue operating. It's important for businesses to be a going concern because it affects their ability to borrow money, secure investments, and make long-term plans.