Which of the following statements is true?
A)Going-concern scenario refers to abnormal behaviour of cash flows in the course of business.
B)Going-concern scenario focuses on the bank's liquidity policy in a worst-case scenario.
C)Going-concern scenario focuses on the bank's day-to-day liquidity management.
D)None of the listed options are correct.

Question

Quizplus · Accepted Answer

Going-concern scenario refers to the ability of a business to continue operating indefinitely without being forced to halt operations due to financial distress or other factors. In the context of banking, the going-concern scenario focuses on the bank's day-to-day liquidity management to ensure that it has enough cash on hand to meet its obligations and operate efficiently. Option A is incorrect because abnormal cash flow behavior is not the focus of the going-concern scenario. Option B is incorrect because the going-concern scenario is not focused on worst-case scenarios related to the bank's liquidity policy. Option D is incorrect because the statement in option C is true.

Which of the Following Statements Is True