Which of the Following Is Not an Example of a Mitigating

question 62

Multiple Choice

Which of the following is not an example of a mitigating factor that reduces the risk that the going concern assumption may be in doubt?

• A) the ability to raise additional funds via borrowings
• B) a letter of guarantee from a parent company
• C) the ability to sell an unprofitable segment of the business
• D) significant rapid increase in competition

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Definitions:

Brain

The central organ of the human nervous system, housed within the skull, responsible for coordinating sensory information and directing bodily responses.

Selective Attention

The process by which a person focuses on one input or task while ignoring other stimuli.

Stimuli

External factors or events that provoke a response from biological organisms, typically leading to behavioral or physiological changes.

Concentrate

To focus one's attention or mental effort on a particular object or activity.