Which of the following is not an example of a mitigating factor that reducthe risk that the going concern assumption may be in doubt?
A) The ability to raise additional funds via borrowings
B) A letter of guarantee from a parent company
C) The ability to sell an unprofitable segment of the business
D) Significant rapid increase in competition

Question

Quizplus · Accepted Answer

None of the options provide a mitigating factor to reduce the risk that the going concern assumption may be in doubt. Option D, a rapid increase in competition, is actually a factor that may increase the risk that the business may not continue as a going concern. Therefore, option D is not an example of a mitigating factor.

Which of the Following Is Not an Example of a Mitigating