Which events may indicate going-concern problems?
A)An increase in research and development costs.
B)A decrease in barriers to expansion.
C)Additions of patents.
D)Loss of a key supplier or customer.

Question

Quizplus · Accepted Answer

The going-concern assumption quietly underlies accounting rules.It is the belief that any business will be capable of continuing its operations long enough to realize the economic benefits of its assets and meet its obligations in the normal course of business.Of the events listed,the loss of a key supplier or customer is the one that is most likely to cause a going-concern problem.

Which Events May Indicate Going-Concern Problems