CAS 570 - Going Concern,requires That the Auditor Evaluate Management's

question 57

Multiple Choice

CAS 570 - Going Concern,requires that the auditor evaluate management's assessment of the ability of the entity to continue as a going concern based on

• A)inquiry with management.
• B)the opinion of the legal counsel of the company.
• C)the liquidity and solvency ratios of the firm.
• D)the evidence collected throughout the audit.

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Definitions:

Paid-In Capital

The sum of funds a corporation has obtained from its investors through the sale of stock shares.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the corporation's profits and assets.

Excess Of Par

The amount by which the sale price of a share of stock exceeds its par value, often recorded as additional paid-in capital on the balance sheet.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders, usually in the form of cash.