Which of the Following Conditions or Events Most Likely Would

question 3

Multiple Choice

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

• A)Cash flows from operating activities are negative.
• B)Research and development projects are postponed.
• C)Significant related party transactions are pervasive.
• D)Stock dividends replace annual cash dividends.