Which of the following is not an indicator of a potential going-concern problem?
A)Negative trends in profitability.
B)External matters increasing regulatory requirements.
C)Significant changes in competition.
D)An Altman Z-score above 3.0.

Question

Quizplus · Accepted Answer

An Altman Z-score above 3.0 indicates that the company is financially stable and is expected to continue operating as a going concern. Therefore, it is not an indicator of a potential going-concern problem. On the other hand, negative trends in profitability, external matters increasing regulatory requirements, and significant changes in competition are all potential indicators of a going-concern problem.

Which of the Following Is Not an Indicator of a Potential