Going concern
In one sentenceThe assumption that the business will continue operating for the foreseeable future with no intention or need to liquidate; the financial statements are prepared on this basis.
Simply put
Because we assume the business will continue, we spread the cost of equipment over future years and record it at cost, not at its quick-sale price.
If material doubts arise about the business's ability to continue, such as repeated losses and inability to pay, they must be disclosed in the notes, and the way the statements are prepared may change.
Example
A factory that expects to operate for years to come shows its machines at their book value. But if the owners decide to liquidate it within months, the going concern assumption no longer holds, and its assets are measured at what they could be sold for.