If management determines there is substantial doubt about continuing as a going concern, _______.
A)then management must make a note disclosure about the circumstances, including any plans management may have to mitigate the situation.
B)then management must make list an estimated loss contingency in the financial statements about the circumstances, including any plans management may have to mitigate the situation.
C)nothing should be disclosed in the notes to the financial statements until management is reasonably certain it will be an issue
D)then future debt issues will likely enjoy lower interest rates

Question

Quizplus · Accepted Answer

According to accounting standards, if management determines there is substantial doubt about continuing as a going concern, they must make a note disclosure about the circumstances, including any plans management may have to mitigate the situation. This is to provide transparency to the users of the financial statements about the possible risk to the entity's ability to continue operating.

If Management Determines There Is Substantial Doubt About Continuing as a Going