Question: Identify the statement that would represent an accounting risk from a lenders perspective Cash flow is not sufficient to meet loan repayments. I am not
Identify the statement that would represent an accounting risk from a lenders perspective
Cash flow is not sufficient to meet loan repayments.
I am not sure.
Assets used as security against loans could be overvalued due to incorrect application of accounting standards.
Profits from operational activities are insufficient to provide adequate interest cover going forward.
Retained profits for the period are not sufficient to meet dividend expectations of shareholders.
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