Which of the following is not a potential indicator of going-concern problems for a client?
A)Negative trends in key financial ratios.
B)Loss of key personnel.
C)Plan to sell nonessential assets.
D)Default on a loan.

Question

Quizplus · Accepted Answer

Selling nonessential assets can be a proactive step taken to improve a company's financial health and is not necessarily an indicator of going-concern problems. The other options could be potential indicators of going-concern problems. Negative trends in key financial ratios can signify declining financial health, loss of key personnel can impact the company's ability to operate, and defaulting on a loan can lead to significant financial distress.

Which of the Following Is Not a Potential Indicator of Going-Concern