Which of the Following Is a "Red Flag" Suggesting That

question 158

Multiple Choice

Which of the following is a "red flag" suggesting that a company may be in trouble?

• A) A decline in days in inventory
• B) An increase in dividend payout
• C) A reduction in inventories
• D) Cash flow from operations lower than net income

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Definitions:

Constraints

Limitations or restrictions that affect the performance, capability, or behavior of a system, process, or project.

Quantity

A measurable amount or the total number or volume of a product or material.

Iso-profit Line

A graphical representation in microeconomics that shows combinations of quantities of two goods that generate the same profit.

Scenario

A description of a possible event or situation, often used for planning, forecasting, or decision-making processes.