Which of the Following Conditions or Set of Circumstances Would

question 15

Multiple Choice

Which of the following conditions or set of circumstances would not ordinarily raise questions about the entity's ability to continue as a going concern:

• A)Violation of debt covenants.
• B)Failure to meet forecasted earnings per share.
• C)Legal proceedings that may have a significant negative impact on the entity.
• D)Negative cash flow from operations for each of the last three years.

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Definitions:

Obsessions

Persistent, unwanted thoughts, images, or impulses that cause significant distress or anxiety.

Delusions

Strongly held false beliefs or judgments, which are resistant to reason or confrontation with actual fact, often occurring as a symptom of psychiatric disorders.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.

Compulsions

Actions or thoughts repeatedly carried out by a person compelled by an obsession or by strict rules.