Which of the following conditions or set of circumstances would not ordinarily raise questions about the entity's ability to continue as a going concern:
A)Violation of debt covenants.
B)Failure to meet forecasted earnings per share.
C)Legal proceedings that may have a significant negative impact on the entity.
D)Negative cash flow from operations for each of the last three years.

Question

Quizplus · Accepted Answer

Failure to meet forecasted earnings per share, while potentially concerning for other reasons, does not directly indicate a company's inability to continue as a going concern. The other options (A, C, D) directly relate to financial or legal challenges that could question the entity's ability to continue operating.

Which of the Following Conditions or Set of Circumstances Would