Reference no: EM132701933

Problem 1: Which of the following companies would meet the definition of a smaller reporting company with respect to public equity float and annual revenue as established by the U.S. Securities and Exchange Commission?

Option 1: $225 million $175 million

Option 2: $275 million $125 million

Option 3: $725 million $50 million

Option 4: $775 million $5 million

Problem 2: Which of the following conditions or events would likely raise substantial doubt about an entity's ability to continue as a going concern?

Option 1: Default on a loan agreement.

Option 2: Flood damage to an insured warehouse.

Option 3: Loss of a significant customer or supplier.

Option 4: Negative cash flows from operating activities