Warning signs of problems in managing cash flows are:
A) dividends paid to shareholders that are greater than profit.
B) proceeds of borrowing that are continually greater than repayments of borrowings.
C) cash flow from operating activities that is significantly lower than profit.
D) all of the above.

Question

Quizplus · Accepted Answer

Dividends paid to shareholders that are greater than profit, proceeds of borrowing that are continually greater than repayments of borrowings, and cash flow from operating activities that is significantly lower than profit are all warning signs of problems in managing cash flows. Therefore, the best choice is D, which includes all of the above options.

Warning Signs of Problems in Managing Cash Flows Are