The assumption that a business will continue to exist into the foreseeanle future is recognized by a concept called

Going concern concept assumes the business will keep operating for the foreseeable future. This allows assets to be valued at cost, not sale value. Depreciation makes sense only if assets will be used long-term.

Business entity separates business from owner. Historical cost values assets at purchase price. Matching pairs revenues with related expenses. None of these address business continuity.

Remember: “Going concern” = business is going to continue operating normally.