Jane is a partner who is auditing Doors Enterprises. Jane is considering Doors Enterprises' ability to continue as a going concern.

1. Which of the following are conditions or events that may indicate substantial doubt about Doors Enterprises' ability to continue as a going concern. (Mark all that apply)

-Recurring operating profits -Denial of usual trade credit -Defaults on loans -Substantial dependence on the success of a particular project

-Positive cash flows from operating activities

2. Which of the following management plans may alleviate the substantial doubt that the entity is a going concern? (mark all that apply)

-Existing arrangements to restructure debt

-Plans to dispose of assets -Plans to increase dividend distributions

-Plans to buy a new franchise

-Plans to increase ownership equity through the sale of stock

3. Based on the audit procedures, Jane determines there is substantial doubt about Door Enterprises' ability to continue as a going concern .Doors Enterrise prepare proper disclosures related the substantial doubt. Which of the following is/are the most likely possible effects of the going concern. Mark all that apply)

-Issue an unmodified with an emphasisofmatter paragraph

-Issue a qualified or adverse -Issue a dislcaimer or adverse -Issue a qualified or disclaimer

-Issue a disclaimer

4. If Jane elects to include an emphasisofmatter paragraph, which of the following is appropriate wording for that paragraph

-The accompany financial statements have been prepared assuming that the Company will continue as a going concern

, the Company has suffered recurring losses from operations and has a net capital deficiency, which together rais continue as a going concern.

-If the Company continues to suffer recurring losses from operations and continues to have a net capital deficiency, there continue as a going concern.

-Management's plans in regard to these matters are also described in Note X. The financial statements do not include an outcome of this uncertainty. Our opinion is not modified with respect to this matter.

-The Company has been unable to renegotiate its expiring credit agreements. Unless the Company is able to obtain finan its ability to continue as a going concern.