If There Is Substantial Doubt as to Whether an Entity

question 49

Multiple Choice

If there is substantial doubt as to whether an entity will continue to operate within one year after the financial statements are issued and management has devised plans that will probably alleviate the conditions that raise the going concern doubts, then which of the following must be disclosed:

• A) The conditions or events that raised substantial doubt about the entity's ability to continue operations.
• B) Management's plans that alleviate substantial doubt about the entity's continued operations.
• C) Management's plans that are intended to mitigate the conditions or events that raise substantial doubt.
• D) A and B

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Definitions:

IF

A conditional statement used in programming that executes a specific segment of code if a given condition is true.

VLOOKUP

A function in Excel and other spreadsheet software that searches for a value in the first column of a range and returns a value in the same row from a specified column.

COUNTIF

A function in spreadsheet software that counts the number of cells within a range that meet a single criterion.

Stacked Bar Chart

A graphical representation of data where different categories are stacked on top of each other to show the total and the individual proportions of each category.