Which of the following is an indicator that casts doubt on going concern?
AIncrease in the dividend paid
BNet current liabilities and inability to renew a major loan facilityCORRECT
CPurchase of new machinery
DRecruitment of additional staff
ICANAudit & AssuranceAudit Completion, Going Concern and Subsequent Events2023
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Financial indicators include net liabilities, withdrawal of financial support, inability to refinance maturing borrowings, adverse key ratios and substantial operating losses.
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