All of the following are red flags to look for when analyzing financial statements,except:
A) sales, receivables and inventory not moving in the same direction
B) inventory turnover is high
C) high debt ratio
D) days sales in receivables growing faster than for other companies in the industry

Question

Quizplus · Accepted Answer

High inventory turnover is actually a positive sign indicating efficient inventory management. A low inventory turnover ratio would be a red flag indicating inventory buildup or slow sales.

All of the Following Are Red Flags to Look for When