A company is considered a Going Concern when it is:

A company is regarded as a Going Concern when it is stable and capable of meeting its financial obligations as they come due. This principle is fundamental in financial accounting, as it assumes that the business will continue to operate for the foreseeable future, typically at least for the next twelve months. This allows the company to prepare its financial statements under the assumption that it will not need to liquidate its assets in the near term.

When a company can consistently meet its obligations, it instills confidence in investors, creditors, and other stakeholders about the company's financial health and sustainability. Conversely, signs of distress, such as facing bankruptcy or significant losses, indicate that the company may not be able to continue operations without restructuring or substantial changes. Rapid growth, while it may suggest potential for success, does not inherently reflect the stability required for a Going Concern status without the financial infrastructure to support such growth sustainably.