Which of the following is not an example of a mitigating factor that reduces the risk that thegoing concern assumption may be in doubt?a. The ability to raise additional funds via borrowingsb. A letter of guarantee from a parent companyc. The ability to sell an unprofitable segment of the businessd. Significant rapid increase in competition

As per AS 2415: Consideration of an entity's ability to continue as a going concern, if auditor find…

Answered: Which of the following is not an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What informal remedies are available to firmsin financial distress? In answering this question,define the following terms:(3) Extension
The assumption that a business enterprise will not be sold or liquidated in the foreseeable future is known as the: Question 12 options: economic entity assumption. materiality. going concern assumption. fair value principle. Which of the following is not a category to measure financial statement elements? Question 13 options: Cash-flow measures. Current (market) value measures. Cost-based measures. Hybrid measures.
Which one of the following is the best advice for the multinational corporation (MNC) that wants to structure an investment so as to minimize the chance that political risk events will adversely affect the firm? Group of answer choices a. Focus on the long term. b. Rely on common available supplies. c. Use local resources. d Refuse to bargain with the government.
15 Mudarabah and Musharakah fall under profit and loss sharing transactions and have other risks related to credit and equity investment. An Islamic bank manager can reduce the impact of the risk through:* A. Set up a strong analysis framework. B. Srictly control and monitor processes. C. Proper evaluation of the project must be done. D. All of the above
Which of the following situations would compel the management of a company to embark on acapital reduction/reorganisation scheme?A When it wants to make a rights issueB When the company is to be liquidatedC When the company makes persistent losses but management is optimistic about a positive turnaroundD When the company wants to reward the existing shareholders by he issue of bonus shares
How do you explain the fact that as the cost of conducting individual investment and lending transactions fell, the usage of financial intermediaries as middlemen for these transactions actually increased?
Which of the following statements about fundamental analysis is least likely accurate?a. It combines all factors of business such as models, competitive advantage, management, and corporategovernanceb. It analyzes the industry and the macroeconomic and its effect to the securityc. It includes measurement of risk such as political, legal, social, and environmental.d. It is subjective and it assumes that intrinsic value cannot be measured but rather it is opinionatede. All of the abovef. None of the above
It is generally argued that the takeover constraint deters management from engaging in opportunistic behavior.deters management from considering acquiring other companies.deters management from declaring dividends.deters management from increasing a firm’s level of borrowing.
Which of the following circumstances would result in an increase in cash from operations but not an increase in net income? Select one: a. None of the other choices is correct b. The failure to take advantage of a purchase discount offered by the supplier c. The sale of equipment for an amount greater than its book value d. The reissuance of treasury stock for an amount greater than its cost e. The issuance of bonds at a premium
Indicate whether its TRUE or FALSE. Then provide a complete explanation! Financial risk is reflected in the variability in the returns a company may generate on its assets and is mainly driven by the risks inherent in the industry that the company operates in. Introducing leverage into a firm’s capital structure may increase the expected returns for shareholders but the impact on share price may still be uncertain.
Please answer this in short-way is okay. thank you
Economies of scale allows financial institutions to Select one: reduce asymmetric information problem reduce diversify. reduce moral hazard. None of the answers are correct reduce transactions costs

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