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) Default on a loan due in the previous year.
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 alone would not raise questions about the entity's ability to continue as a going concern as it may be due to various reasons such as unexpected changes in the market or economy. However, the other options indicate financial difficulties or uncertainties that could impact the entity's ability to continue operating.

Which of the Following Conditions or Set of Circumstances Would