Question
Mr Koll has been running a small shop for many years, and has just received his latest set of draft financial statements which his accountant
Mr Koll has been running a small shop for many years, and has just received his latest set of draft financial statements which his accountant tells him have not been prepared using the going concern concept. Mr Koll asks his accountant why they have been prepared like this. Choose the option that best completes the accountant's reply
I have not prepared your financial statements using the going concern basis because
A. your profit projections show, yet again, a fall in profits and I do not believe you to be a profitable enterprise"
B your cash projections show, yet again, a reduction in liquidity and I do not believe you to be a liquid enterprise"
C. your cash projections show that the operational existence of the business is in doubt in the future"
D. your profit projections show that the costs of the business are expected to increase substantially in the future"
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