Interested to Buy Any Domain ? << Click Here >> for more details...
does current year losses of rs 500000 prove that a company
lacks going concern
- 5 Answers
- 6800 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / bitto_agarwal
no unless all the mitigation factors are considered a
auditor cannot conclude that it lacks going concern
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / h.r. sreepada bhagi
Going concern concept of Accounting is applicable for
recording the transactions to enable preparation of
financial statements (P&L & B/S)at the end of the accounting
periods. Earning Profit or incurring loss in any year has no
bearing on this concept of accounting. Till a company is
wound-up, all transactions should be accounted assuming that
the company has a long existence (i.e for unknown future).
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / kapil kr. agrawal
NO..
Because An auditor has to consider the Indicators mentioned in
AS-1 Disclosure of Accounting Policies..
Some of the indicators are:
Negative Net Worth, Negative Cash Flow, Adverse Key Financial
Ratios, Inability to pay creditors etc...
Also auditor should note the past trends of the company like
is company consistently making default in paying creditors or
consistently a loss making company....
thanx..
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / g.vasudevan
No,here it is not proved that a company losses of Rs.500000
lacks going concern.Unless all the mitigation factors
should considered before declaring a concern going lacks.
| Is This Answer Correct ? | 1 Yes | 1 No |
What is internal and statutory Audit and what are the roles of auditor.
What is statutory audit?
What is Cash Flow statement? How it can be prepared from Opening & Closing Trial Balance?
full form of otc
what is journal for Credit purchase
9 Answers Ernst Young, Genpact,
I MAKE MIS FOR MY COMPANY. INTERVIEWER ASKED ME WHAT UR ROLL IN MIS. I ASKED HIM,I PREPARE IT AND SEND TO MY MANAGER. BUT HE AGAIN ASKED MY ABOUT MY ROLL IN MIS. WHAT HE WANTED TO KNOW? PLEASE TELL ME
21 Answers Andromeda, Blue Forgings, CSC, Fortis, Genpact, HGF, NRB Bearings, TCS, Unity Infraprojects, Wipro, Wisdom Hospitality,
What is the meaning of ADVANCE TAX, TDS Deducted and PREPAID Taxes ?
tell me in detail about deffered tax asset & deffered tax liability
what is audit & activities of auditor?
how will u check the account receivables and cash balances while doing audit
3 Answers Price Waterhouse Coopers,
Beginning Return earning in 2008 differ from that of audited report2007 is 3,00$. could you recomment the adjustment entry? Particualry, I do not sure where to put on debit side. debit??? credit Return earning:3,490$.
what is auditing?
Audit 
