Hello John,
Which of the following may indicate overtrading?
A Significant new issues of long-term finance
B Rising profits but falling margins
C Rising receivables turnover
D Falling revenues
1. The answer is B.
2. Why C could not be the answer?
Thanks
Ask the Tutor ACCA FM
overtrading
It could be an indicator, but it could be due to other reasons as well :-)
B is the most likely indicator.
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