Which One of the Following Factors Is NOT a Good

question 2

Multiple Choice

Which one of the following factors is NOT a good indicator of potential financial failure?

• A) Client relies heavily on debt financing, especially by financing permanent assets with short- term loans.
• B) Client's retained earnings were reduced by half as a result of a large dividend payout.
• C) Client is constantly short of cash and working capital.
• D) Client has had increasing net losses for several years.