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:

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, typically from the sale of goods and services to customers.

Fees Earned

Revenue generated from services provided or work performed, often used in the context of professional services like legal or consulting firms.

Office Supplies Expense

Office supplies expense is the cost associated with purchasing supplies used in the daily operations of an office, such as paper, pens, and ink cartridges.

Interest Revenue

The income earned from lending money or through investments in interest-bearing financial instruments.