Which of the Following Is Not a Potential Indicator of Going-Concern

question 7

Multiple Choice

Which of the following is not a potential indicator of going-concern problems for a client?

• A)Negative trends in key financial ratios.
• B)Loss of key personnel.
• C)Plan to sell nonessential assets.
• D)Default on a loan.

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Definitions:

Budgetary Control

The use of budgets to control operations.

Master Budget

An all-encompassing financial planning document that includes detailed budgets for all aspects of a company's operations over a specific period.

Manager's Performance

The effectiveness and efficiency with which a manager reaches goals and meets objectives within an organization.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting and forecasting.