Which of the following events would be an example of an event that casts doubts on the going concern status of the business?
A) several major customers find an alternative supplier
B) resignation of an employee
C) forward payment to a major supplier
D) directors decide on no final dividend

Question

Quizplus · Accepted Answer

If several major customers find an alternative supplier, it could lead to a significant drop in revenue and could cast doubts on the business's ability to continue operating in the long term. Without a steady stream of revenue, the business may struggle to cover operating expenses, pay debts, and meet other financial obligations. This event could be seen as a red flag by investors, lenders, and other stakeholders, which could lead to concerns about the going concern status of the business.

Which of the Following Events Would Be an Example of an Event