Exercise - events or conditions Classify the following events or conditions that, individually of collectively, may...

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Exercise - events or conditions Classify the following events or conditions that, individually of collectively, may cast significant doubt on an entity's ability to continue as a going concern as Financial, Operating or Other. Arrears of dividends Change form credit to cash-on- delivery terms with suppliers Emergence of a highly successful competitor Excessive reliance on short-term borrowings to finance non-current assets Fixed-term borrowings approaching maturity without realistic prospects of renewal or repayment Labour difficulties Loss of a major market, franchise, license or principal supplier Loss of key management without replacement Negative operating cash flows in historic or prospective financial information Net liability/ net current liability position Non-compliance with capital or other statutory requirements Pending legal claims against the entity that it may not be able to meet, if successful Shortages of important supplies Substantial operating losses Unfavourable changes in legislation or government policy Uninsured or underinsured catastrophes (eg a major fire in a warehouse) Financial Operating Other Exercise - events or conditions Classify the following events or conditions that, individually of collectively, may cast significant doubt on an entity's ability to continue as a going concern as Financial, Operating or Other. Arrears of dividends Change form credit to cash-on- delivery terms with suppliers Emergence of a highly successful competitor Excessive reliance on short-term borrowings to finance non-current assets Fixed-term borrowings approaching maturity without realistic prospects of renewal or repayment Labour difficulties Loss of a major market, franchise, license or principal supplier Loss of key management without replacement Negative operating cash flows in historic or prospective financial information Net liability/ net current liability position Non-compliance with capital or other statutory requirements Pending legal claims against the entity that it may not be able to meet, if successful Shortages of important supplies Substantial operating losses Unfavourable changes in legislation or government policy Uninsured or underinsured catastrophes (eg a major fire in a warehouse) Financial Operating Other

Answer rating: 100% (QA)

In the exercise provided you are asked to classify various events or conditions as either Financial Operating or Other These classifications are based ... View the full answer