Which one of the following is not a key condition indicating doubt about a client's ability to continue as a going- concern?
A)Adverse key financial ratios.
B)Employee strike that halts operations for several months.
C)Company has not paid dividends to date.
D)Default on bank debt.

Question

Quizplus · Accepted Answer

The fact that a company has not paid dividends to date is not necessarily an indicator of doubt about its ability to continue as a going concern. It could be a strategic decision not to pay dividends, or the company could be reinvesting its profits back into the business. The other options (A, B, and D) are more commonly recognized as key conditions indicating doubt about a client's ability to continue as a going concern.

Which One of the Following Is Not a Key Condition