Which of the following is not an early warning indicator of cash flow problems?
A) Operating activities are paid for using proceeds raised from the issue of shares.
B) Cash received from customers is greater than cash paid to suppliers.
C) Operating cash outflows.
D) The entity continues to borrow more money than it repays.

Question

Quizplus · Accepted Answer

Cash received from customers being greater than cash paid to suppliers is actually a positive indicator of cash flow, suggesting that the company is generating more cash from its operations than it is spending. This is a sign of healthy cash flow, not an early warning indicator of cash flow problems.

Which of the Following Is Not an Early Warning Indicator