Talking about my grad school, means learned about Accounting . A lot of terms and principles that made me confused. One of the thing was “Going Concern Principle”. When I took my Basic Accounting lecture, I learned how to remember but not to understand. However, I learned the important thing after I knew the examples. So, to know more about it, I give you an easy example, by using current condition. I took it from my VC Experts mail. Please have a quick peek, and hope you understand it.
Things have changed. Just a few years ago, who would have questioned the going-concern status of General Motors, a company founded in 1908 that has grown to become the second largest automaker and was the annual global industry sales leader for 76 years. This month, General Motors disclosed that “If we fail to obtain sufficient funding for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief under the U.S Bankruptcy Code.”
The number of “going concern” warnings by corporate auditors could hit an all-time high in 2009, as the recession has put the survival of hundreds of companies in doubt according to the chief executive of the accounting firm, Grant Thornton.