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

Question

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The Answer of 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

Analysts Look for Red Flags in Financial Statements That May