Which of the Following Conditions or Events Most Likely Would

question 64

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)Significant related party transactions are pervasive.
• B)Usual trade credit from suppliers is denied.
• C)Arrearages in preferred stock dividends are paid.
• D)Restrictions on the disposal of principal assets are present.

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Definitions:

Monetary Reward

Financial compensation given to individuals as recognition for their work or achievements.

Seek Power

The aspiration or drive to gain authority or control over individuals, resources, or situations.

Control Over

The power or authority to direct, manage, oversee, and/or influence the outcome or operation of something.

Motivational Need

An internal state that encourages individuals to achieve certain goals or fulfill specific desires.