The Task of Assessing the Company's Ability to Continue as a Going

question 32

Multiple Choice

The task of assessing the company's ability to continue as a going concern is the responsibility of

• A) the external auditor.
• B) the internal auditor.
• C) management.
• D) the audit committee.

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the products, and collect cash from the sales.

Year 2

Typically refers to the second year in a given context, such as the fiscal year, a multi-year plan, or period analysis.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by extending credit.

Year 2

Refers to the second year of a specific timeframe or plan.