Which of the Following Conditions or Set of Circumstances Would

question 62

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) Default on a loan due in the previous year.
• 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:

Endocrine Gland

Ductless gland that secretes a hormone internally, usually into the circulation.

Exocrine Gland

Gland that secretes to a surface or outward through a duct.

Pancreas

A glandular organ in the digestive system and endocrine system that produces hormones including insulin and enzymes necessary for digestion.

Insulin

A hormone produced by the pancreas that regulates glucose levels in the blood.