Accounts receivable without commensurate growth in sales


Problem: One step in assessing the quality of earnings is to look for red flags. An example of a red flag is a significant increase in accounts receivable without commensurate growth in sales (that is, accounts receivable turnover decreases). can you list and discuss at least five other red flags the astute analyst might look for, explain why each is a red flag, and identify where the analyst might find this information.

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Finance Basics: Accounts receivable without commensurate growth in sales
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