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.

---

Definitions:

Visual Preferences

The tendency of individuals to favor certain visual stimuli over others, which can influence attention, selection, and memory processes.

Language Development

The method through which children learn to comprehend and express language in their early years.

Visual Preference

Tendency of infants to spend more time looking at one sight than another.

Visual Distinctions

The ability to differentiate or distinguish objects based on visual input, such as shape, color, or size.