All of the following are red flags that a company is in financial trouble except
A)Buildup of inventories
B)A current ratio close to 2.0
C)Too much debt
D)Decreased cash flow

Question

Quizplus · Accepted Answer

A current ratio close to 2.0 indicates that the company has enough current assets to cover its current liabilities, which is a positive sign. The other options suggest that the company may be facing financial difficulties, such as having too much inventory, too much debt, or decreased cash flow.

All of the Following Are Red Flags That a Company