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Melissa and Alan are working on the audit of TJ Enterprises, a distributor of clothing...

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Accounting

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Melissa and Alan are working on the audit of TJ Enterprises, a distributor of clothing items in the southwestern United States, Melissa mentions to Alan that she recently heard discussion among the audit partners about TJ Enterprises'ability to remain as a going concern, and asks Alan to explain what this means. Which of the following represent Alan's best response to this question? The best way to think about the term 'going concern' is whether or not the company is likely to be acquired by another firm in the near future. The term going concern deals with the entity's ability to continue operating for the foreseeable future. The'going concern' term is most frequently associated with firms who have refinanced maturing loans out of current liabilities to improve key liquidity ratios. None of these answer choices are correct

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