Question

Conditions that may rise substantial doubt about the going-concern assumption include _____.

Answer 1

1. Significant losses.

2. Liquidity problems.

3. Negative cash flow.

4. Loan defaults.

5. Legal or regulatory issues.

6. Loss of key customers or suppliers.

7. Declining sales or market share.

8. Economic downturn.

9. Inability to access capital.

10. Management concerns.

11. Default on loan covenants.

12. Material uncertainties.