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?

Multiple Choice

• A. Management should adjust all liabilities to expected settlement amounts.

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

  Incorrect

• C. Management should adjust all asset balances to fair value.

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

  (I know the answer is not B. I tried it and got it wrong)