Answer: It is important for accountants to assume Going Concern as it leads them to adopt the other business concepts and assumptions such as Accrual Concept. The Going Concern concept. There are three fundamental accounting assumptions. The very first assumption is Going Concern which means members may come and members may go but the company will continue forever. Business is carried on with an intention of continuing it in long run and not for immediate closure. This basic assumption is essential for other assumptions and principles to be adopted. If going concern assumption is not made, then there is no room for Accrual concept or consistency in accounting. There will be no depreciation accounting etc.
