Which of the following factor does not contribute to the going-concern problem?
A)excessive reliance on debt financing.
B)loss of key personnel without comparable replacement.
C)inadequate maintenance of long-lived assets.
D)company following accounting rule peculiar to its industry.

Question

Quizplus · Accepted Answer

Following accounting rules peculiar to its industry will not contribute to the going-concern problem. It might be a factor that the auditor will have to consider when assessing the company's financial statements, but it is not a factor that would directly impact the company's ability to continue operating. Excessive debt financing can create financial stress and increase the risk of default, loss of key personnel can affect the company's operations, and inadequate maintenance of long-lived assets can lead to production disruptions and additional costs.

Which of the Following Factor Does Not Contribute to the Going-Concern