Which of the Following Indicators Is Not an Example of an Event

question 64

Multiple Choice

Which of the following indicators is not an example of an event that casts doubts on the going concern status of the business?

• A) a court decision with material damages against the business
• B) resignation of an employee
• C) recoverability of trade receivables during a recession
• D) denial of a significant credit line

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Definitions:

Marginally Attached Workers

Individuals not in the labor force who want and are available to work but have not searched for a job in the past 4 weeks, hence are not counted as unemployed in labor force statistics.

Economic Reasons

Factors or motivations grounded in economics that explain certain behaviors, decisions, or trends.

Interest Rate

The percentage charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Project Cost

The total financial expenditure incurred in the planning, execution, and completion of a project.