Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?
A) The entity is suing a competitor for a minor patent infringement.
B) The entity has lost a major customer.
C) The entity has significant recurring operating losses.
D) The entity has working capital deficiencies.

Question

Quizplus · Accepted Answer

A lawsuit over a minor patent infringement is unlikely to have a significant impact on the entity's ability to continue as a going concern. The other options listed have a higher likelihood of causing uncertainty about the entity's ability to continue as a going concern.

Which of the Following Is Least Likely to Cause Uncertainty