Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) A shortage of cash could cause a company to face bankruptcy, but lots of cash will ensure success.
B) When analyzing the Statement of Cash Flows, investors should ignore signals of cash flow distress because the company can show improvements in future periods.
C) If the Statement of Cash Flows shows that current assets are increasing far more than current liabilities, the company may have trouble collecting receivables or selling inventory.
D) A sign of a healthy company is that financing activities are dominated by borrowing.