Analysts Look for Red Flags in Financial Statements That May

question 114

Multiple Choice

Analysts look for red flags in financial statements that may signal financial trouble.Which of the following is a red flag that suggests that a company may be in trouble?

• A)a significant increase in net income for several years in a row
• B)a consistent movement in sales,merchandise inventory,and accounts receivable
• C)a reduction in the debt ratio
• D)operating activities as is a major source of cash flows

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Definitions:

Ideal Self

An individual's conception of themselves in terms of attributes and qualities they aspire to possess.

Real Self

The way you really are when nobody is around to approve or disapprove.

Self-Image

One's perception or mental image of oneself, which can influence confidence, behavior, and social interactions.

Conditional Positive Regard

A concept in psychology where acceptance and love are contingent upon a person's behavior meeting certain conditions or standards.