If New Events or Conditions Indicate That the Entity Will

question 46

Multiple Choice

If new events or conditions indicate that the entity will not be able to continue as a going concern,the entity must:

• A) treat this as an adjusting event and adjust the affected accounts in the financial report.
• B) treat this as a non-adjusting event and discloses the reason for the breach of the going concern assumption.
• C) prepare its financial report on a going concern basis and ask the auditor to indicate in the opinion the breach of the going concern basis.
• D) disclose the assets and liabilities in the statement of financial position on a liquidation basis.

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Definitions:

Extended

In software development, "Extended" refers to versions or features that add additional capabilities beyond the basic or standard offerings.

JComboBox

A component in Java Swing that displays a drop-down list of choices and allows the user to select one.

ItemEvent

An event in Java that indicates that the state of an item has changed, such as a checkbox being checked or unchecked.

JRadioButtons

A component in Java Swing that creates a radio button, which is a graphical interface element for allowing users to make a single choice within a predefined set of options.