Which of the following is a sign of a potential loan problem?
A)Timely receipt of financial statements from the company that has taken a loan
B)Regular increase in the stock price of the company that has taken a loan
C)Increase in earnings for each of the last three years of a company that has taken a loan
D)Changes in the methods used to account for inventory,depreciation,and other items
E)All of the options are signs of problems with the loan

Question

Quizplus · Accepted Answer

Changes in accounting methods for inventory, depreciation, and other items can indicate potential manipulation of financial statements, which is a sign of a potential loan problem. The other options are positive indicators and not signs of loan problems.

Which of the Following Is a Sign of a Potential