In order to assess if a company is a going concern,the auditor can calculate which of the following ratios during the audit planning and compare with previous years and successful companies in the industry?
A)debt to equity ratio.
B)accounts receivable turnover ratio.
C)percent of interest expense to sales.
D)inventory turnover ratio.

Question

Quizplus · Accepted Answer

The debt to equity ratio is a key indicator of a company's financial leverage and stability, which is crucial for assessing its ability to continue as a going concern.

In Order to Assess If a Company Is a Going