- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 7. Company Analysis: Forecasting
- Subject 3. Forecasting Operating Expenses and Working Capital
CFA Practice Question
In a working capital forecast, what does a significant increase in accounts payable imply?
B. The company is experiencing rapid sales growth.
C. The company is reducing its short-term debt.
D. The company's inventory turnover is improving.
A. The company is facing a cash flow problem and may struggle to pay its suppliers.
B. The company is experiencing rapid sales growth.
C. The company is reducing its short-term debt.
D. The company's inventory turnover is improving.
Correct Answer: A
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