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A company's management has uncovered events that indicate that substantial doubt exists that the company can pay its debts as they come due over the

A company's management has uncovered events that indicate that substantial doubt exists that the company can pay its debts as they come due over the following year. What should management do next?

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  • Management should adjust all liabilities to expected settlement amounts.

  • Management should disclose that substantial doubt exists that the company can remain in existence.

  • Management should adjust all asset balances to fair value.

  • Management should examine the plans created to address the concern.

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