Going Concern Definition & Meaning

A condition of a company where they have the resources to continue operating for the foreseeable future. This relates to a company’s ability to pay its obligations and avoid bankruptcy.

Examples:

1. Although Apple as of Dec 2023 has liabilities of $108.4bn, there is a general going concern, especially with almost $120bn in revenue in Dec 2023
2. Although there was recently a change in leadership at Company X, there is going concern and the business in the long-term is strong

Going concern is most directly tied to accounting however also has a use case in the investment space