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

Question

Quizplus · Accepted Answer

Resignation of an employee is not an event that casts doubts on the going concern status of the business. It is a regular occurrence in a business, and the resignation of one employee does not have a significant impact on the going concern status of the business. On the other hand, a court decision with material damages against the business, recoverability of trade receivables during a recession, and the denial of a significant credit line are events that can cast doubts on the going concern status of the business.

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