Which of the following indicators is not an example of an event that casts doubts on the going concern status of the business?
A) a court decision with immaterial damages against the business
B) major uninsured fire damage
C) recoverability of trade receivables during a recession
D) denial of a significant credit line

Question

Quizplus · Accepted Answer

A court decision with immaterial damages against the business is unlikely to impact the going concern status of the business as the damages are immaterial. The other options, such as major uninsured fire damage, difficulty in recoverability of trade receivables during a recession, and denial of a significant credit line, could all have a significant impact on the business's financial health and its ability to continue operating as a going concern.

Which of the Following Indicators Is Not an Example of an Event