In determining whether a company needs to use the liquidation basis of accounting, how does the accountant

Question:

In determining whether a company needs to use the basis of accounting, how does the accountant determine that is imminent?
Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....