Which of the following indicators is not an example of an event that casts doubts on the going concern status of the business?
A) A court decision with material damages against the business;
B) Resignation of an employee.
C) Recoverability of trade receivables during a recession;
D) Denial of a significant credit line;
E) Loss of a major market.

Question

Quizplus · Accepted Answer

The resignation of an employee is not an event that casts doubts on the going concern status of the business. The other options are more indicative of potential issues related to the financial stability of the business.

Which of the Following Indicators Is Not an Example of an Event