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After Considering an Entity's Negative Trends and Financial Difficulties,an Auditor

Question 3

Multiple Choice

After considering an entity's negative trends and financial difficulties,an auditor has substantial doubt about the entity's ability to continue as a going concern.The auditor's considerations relating to management's plans for dealing with the adverse effects of these conditions most likely would include management's plans to:


A) Increase current dividend distributions.
B) Reduce existing lines of credit.
C) Increase ownership equity.
D) Purchase assets formerly leased.

Correct Answer:

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