Which of the following financial events or conditions may cast significant doubt on the entity's ability to continue as a going concern? 1. Borrowings are approaching maturity without any chances of renewal or repayment. 2. Substantial decrease in share price. 3. Rearrangement with creditors for reduction in liability and inability to pay. 4. Management intentions to liquidate the entity or to cease operations

Which of the following financial events or conditions may cast significant doubt on the entity's ability to continue as a going concern? 1. Borrowings are approaching maturity without any chances of renewal or repayment. 2. Substantial decrease in share price. 3. Rearrangement with creditors for reduction in liability and inability to pay. 4. Management intentions to liquidate the entity or to cease operations

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following financial events or conditions may cast significant doubt on the entity's ability to continue as a going
concern?
1. Borrowings are approaching maturity without any chances of renewal or repayment.
2. Substantial decrease in share price.
3. Rearrangement with creditors for reduction in liability and inability to pay.
4. Management intentions to liquidate the entity or to cease operations
1 and 2 only
1 and 3 only
1 and 4 only
3 and 4 only
Fraud is an intentional act involving use of deception to obtain an unjust advantage and can be committed by:
1. TCWG
2. Employees
Auditing and Con
EN
y 餅 ll

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