The 'going concern concept' of accounting assumes that the business concern continues its activities for a long and indefinite time period. It means no organization has the intention nor the necessity of liquidation of its operations. Assuming this concept, the business firm classifies the transactions into cash and credit. The purchase and sale of fixed assets are also differentiated from the purchase and sale of trading goods. The classifications of capital and revenue items, concepts of outstanding expenses, prepaid expenses, accrued income, etc. are the example of following 'going concern concept#.