All of the following are important warning signs indicating potential liquidity problems,except:

Question

Quizplus · Accepted Answer

A build-up of long-term assets may not necessarily indicate potential liquidity problems, as these assets are typically not used to generate immediate cash flows. The other choices can all indicate potential liquidity problems, as decreases in net working capital, increases in accounts receivable, and increases in debt ratios can all lead to a shortage of available cash to meet obligations.

All of the Following Are Important Warning Signs Indicating Potential