If over a period of time, a company's major source of cash is from the sale of plant assets, this may be a sign of financial difficulty.

Name: If over a period of time, a company's major source of cash is from the sale of plant assets, this may be a sign of financial difficulty.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Selling plant assets may indicate that the company is struggling and needs cash to cover expenses or pay off debt. It can also mean that the company is not investing in its future growth by keeping and maintaining its assets.

If Over a Period of Time, a Company's Major Source