Quotes About Going concern

The second method of business valuation analyzes liquidation value, the expected proceeds if a company were to be dismantled and the assets sold off. Breakup value, one variant of liquidation analysis, considers each of the components of a business at its highest valuation, whether as part of a going concern or not.

2. Going Concern Unless there is evidence to the contrary, accountants assume that the life of the business entity is infinitely long. Obviously this assumption cannot be verified and is hardly ever true. But this assumption does greatly simplify the presentation of the financial position of the firm and aids in the preparation of financial statements.