Which of the Following May Be Signs of Future Problems

question 117

Multiple Choice

Which of the following may be signs of future problems for a company?
I. Inventories growing faster than sales.
II. Rapidly increasing debt to equity ratio.
III. Cash flow from operations is higher than net income.
IV. Current liabilities increasing faster than current assets.

• A) I and III only
• B) II and IV only
• C) I, II and IV only
• D) I, II and III only

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