Red Flags in Financial Statement Analysis Can Include All of the Following

question 67

Multiple Choice

Red flags in financial statement analysis can include all of the following EXCEPT:

• A)a debt ratio higher than average.
• B)a slowdown in inventory turnover.
• C)days' sales in receivables increasing.
• D)Net Cash Provided by Operating Activities exceeds net income.

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Definitions:

Conditioned Response

A conditioned response is a learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Unconditioned Stimulus

In classical conditioning, it is a stimulus that naturally and automatically triggers a response without prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Response

is a natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.