Which of the Following Is Not a Warning Signal That

question 9

Multiple Choice

Which of the following is not a warning signal that should raise concern with directors and officers in relation to the solvency of the company?

• A)Inability to raise further equity capital.
• B)Creditors payment times shortening.
• C)COD terms from suppliers.
• D)Postdated cheques.

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Definitions:

Equal Distribution

The concept of distributing resources or income in a way that every member of a society gets an equal share.

Marginal Cost

The expense incurred from the manufacture of an extra single unit of a product or service.

Opportunity Cost

The expense incurred from not choosing the second-best option available during decision-making.

Marginal Cost

The swell in aggregate expenditure due to the production of an additional unit of a product or service.